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calculate operating income if sales volume increases by 20 639279

Prepare a contribution margin format income statement; calculate break even point Presented here is the income statement for Edwards Co. for February:



Cost of goods sold


Gross profit


Operating expenses


Operating income


Based on an analysis of cost behavior patterns, it has been determined that the company’s contribution margin ratio is 35%.


a. Rearrange the preceding income statement to the contribution margin format.

b. Calculate operating income if sales volume increases by 20%.

c. Calculate the amount of revenue required for Edwards to break even.

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