Campbell Corporation's records show the following information

Number of units sold $5,000$

Sales revenue $$75,000$

Variable costs $24,000$

Fixed costs $12,000$

 

 

Required

$1.$ Prepare a contribution income statement for Campbell, showing the calculation of the contribution margin in dollars, per unit amounts, and ratios, as well as Campbell's operating profit.

$2.$ Use the relationships in the contribution income statement to answer the following independent scenarios:

If Campbell's sales increase by $1,000$ units, what will be the change to their operating profits?

If Campbell's sales increase by $$12,000,$ what will be the change to their operating profits?

Answer rating: 100% (QA)

1 Contribution Income Statement for Campbell Corporation Sales Revenue 75000 Variable C... View the full answer