Show n here is an income statement in the traditional format for a firm with a sales volume of 8.000

Show n here is an income statement in the traditional format for a firm with a sales volume of 8.000 units. Cost formulas also are show n: Revenues…………………………………………………………………………………………………….. \$32.000 Cost of goods sold (\$6.000 – \$2.1 10/unit)……………………………………………………….. 22.800 Gross profit…………………………………………………………………………………………………….\$9.200 Operating expanses: Selling (S1.200 + S0.10/unit)…………………………………………………………………………. 2.000 Administration (S4.COO t SQ.20/unit)……………………………………………………………. 5.600 Operating income……………………………………………………………………………………….. \$1.600 Required: a. Prepare an income statement in the contribution margin format. b. Calculate the contribution margin per unit and the contribution margin ratio. c. Calculate the firm s operating income (or loss) if the volume changed from 8.0(K) units to 1. 12.000 units. 2. 4.000 units. d. Refer to your answer to part a for total revenues of \$32.000. Calculate the firm s operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues 1. Increase \$12.000. 2. Decrease \$7.000.