Problem
Presented here is the income statement for Fairchild Co. for March: Sales $ 82,500 Cost of goods sold 40,000 Gross profit $ 42,500 Operating expenses 30,500 Operating income $ 12,000 Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 28%.
Required:
a. Rearrange the preceding income statement to the contribution margin format. sales, variable expense, contribution margin, fixed expenses, operating income.