A manufacturer’s contribution margin income statement for the year follows. Prepare contribution margin income statements for each of the three separate cases below.

1. The 10,000 units sold and produced increases to 10,400 units and fixed costs increase by $5,000.
2. Unit selling price decreases by 5% and units sold and produced increase by 8%.
3. Fixed costs increase by $20,000, variable costs per unit decrease by $2, and units sold and produced increase by 500.

Transcribed Image Text:

Contribution Margin Income Statement Sales (10,000 units x $10 per unit).. Variable costs (10,000 units x $6 per unit)... . . . $100,000 60,000 Contribution margin (10,000 units x $4 per unit) . 40,000 Fixed costs 30,000 Income $ 10,000