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CVP Analysis - BEP
Prepare a contribution margin format income statement; calculate break-even point: Presented here is the income statement for Edwards Co. For February:
Sales...............
$80,000
Cost of goods sold..............
$48,000
Gross profit........
$32,000
Operating expenses.............
$21,200
Operating income ...............
$10,800
Required:
a. Rearrange the preceding income statement to the contribution margin format.
b. Calculate operating income if sales volume increases by 20%. (note: Do not construct an income statement to get your answer.)
c. Calculate the amount of revenue required for Edwards to break even
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Calculate operating income if sales volume increases by 20% and Determine the amount of revenue required for Edwards to break even
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