prepare a contribution margin income statement showing the anticipated operating income. Consider…


Question Description:

25

prepare a contribution margin income statement showing the anticipated operating income. Consider… 1 answer below » CB Markets imports and sells small bear-shaped piñatas. In planning for the coming year, the company”s owner is evaluating several scenarios. For each scenario under consideration, prepare a contribution margin income statement showing the anticipated operating income. Consider each scenario independently. Last year”s income statement is as follows: View complete question » Total Per Unit Sales $600,000 $12.00 Variable expenses 350,000 7.00 Contribution margin 250,000 $ 5.00 Fixed expenses 175,000 Operating income $ 75,0 CB Markets imports and sells small bear-shaped piñatas. In planning for the coming year, the company”s owner is evaluating several scenarios. For each scenario under consideration, prepare a contribution margin income statement showing the anticipated operating income. Consider each scenario independently. Last year”s income statement is as follows: Total Per Unit Sales $600,000 $12.00 Variable expenses 350,000 7.00 Contribution margin 250,000 $ 5.00 Fixed expenses 175,000 Operating income $ 75,000 Required The sales price increases by 10% and sales volume decreases by 5%. The sales price increases by 10% and variable cost per unit increases by 5%. The sales price decreases by 10% and sales volume increases by 20%. Fixed expenses increase by $20,000. The sales price increases by 10%, variable cost per unit increases by 10%, fixed expenses increase by $25,000, and sales volume decreases by 10%. View less » Jun 11 2014 04:04 PM

Answer

25