C-V-P Analysis—Changes in Variables Tracy, Inc., estimates that next year’s results will be:

Recompute profit, assuming each of the following independent conditions:
1. A 9% increase in the contribution margin.
2. An 8% increase in the sales volume.

3. A 4% decrease in the sales volume.
4. A 6% increase in variable costs per unit.
5. A 5% decrease in fixed costs.
6. A 5% increase in fixed costs.
7. A 12% increase in the sales volume and a 6% increase in fixed costs.

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Sales revenue (75,000 units) Less variable costs Less fixed costs Profit $900,000 (375,000) (300,000) $225,000