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
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.