Preparing a Contribution Format Income Statement [LO1]

Wheeler Corporation’s most recent income statement follows:

Required:
Prepare a new contribution format income statement under each of the following conditions (consider each case independently):
1. The sales volume increases by 50 units.
2. The sales volume declines by 50 units.
3. The s ales v olume i s 7,000 uni ts.

Transcribed Image Text:

Sales (8,000 units).... Variable expenses Contribution margin.... Fixed expenses Net operating income Total Per Unit $208,000 144,000 $26.00 18.00 64,000 $ 8.00 56,000 $ 8,000