Refer to the information presented in E5-13 for Paddle Away. Each of the following scenarios is a variation of Paddle Away’s original data.

Required:

Prepare its contribution margin income statement for each independent scenario.

1. Paddle Away raises the sales price to $600 per canoe.

2. Both sales price and variable cost per unit increase by 10 percent.

3. Paddle Away cuts its fixed cost by 20 percent.

Data from E5-13

Paddle Away, Inc., makes one model of wooden canoe. Partial information for it follows:

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Number of canoes produced and sold Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 450 600 750 $ 67,500 ? ? 150,000 ? ? $217,500 ? ? ??? 222 ???