Contribution Income statement
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A company's recent incomestatement is as follows:
Total Per Unit
Sales (30,000 Units) $150,000 $5
Less variable expenses 90,000 3
Contribution Margin 60,000 2
Less Fixed expenses 50,000
Net Operating income $ 10,000
Prepare new income statement under each of the following conditions (consider each case independently):
1. The sales volume increases by 15%.
2. The selling price decreases by 50 cents per unit, and the sales volume increases by 20%.
3. The selling price incereases by 50 cents per unit, fixed expenses increase by $10,000, and the sales volume decreases by 5%.
4. Variable expenses increase by 20 cents per unit, the selling price increases bu 12%, and the sales volume decreases by 10%.
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This provides the steps to prepare Contribution Income statement under various situations
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A company's recent incomestatement is as follows:
Total Per Unit
Sales (30,000 Units) $150,000 $5
Less variable expenses ...
Purchase this Solution
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