Double R Company's most recent income statement, prepared on a contribution-margin bssis, is as follows:

Prepare a new income statement under each of the following independent conditions:

a. Sales volume increases \(20 \%\).

b. The selling price drops \(\$ 4\) per unit, and sales volume increases \(30 \%\).

c. The selling price increases \(\$ 2\), fixed costs increase \(\$ 10,000\), and sales volume decreases \(5 \%\).

d. The selling price increases \(20 \%\), variable costs increase \(\$ 2\) per unit, and fixed costs increase \(20 \%\).

e. Variable costs increase \(\$ 2\) per unit, and fixed costs decrease by \(\$ 40,000\).

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Total Per Unit Sales $500,000 $25 Less variable costs 360,000 18 Contribution margin $140,000 $ 7 Less fixed costs 110,000 Net income $ 30,000