Presented below are selected income statement data for Kettridge's Farm for the month of April: Sales $110,000 COGS $ 57,000 Operating Expenses $38,000 Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 40%.
(a.) Use the income statement data to prepare a contribution margin.
(b.) If sales increase by 10 percent, what will be the firm's operating income?
(c.) Calculate the amount of revenue required for Kettridge's Farm to break even.