1234 1 2 3 4 A B C D E F G A manufacturer's contribution margin income statement for the year follows. Prepare contribution margin income statements for each of the three separate cases below. Units Selling price Variable cost Contribution per unit per unit Contribution Margin Income Statement Sales (10,000 units x $10 per unit) Variable costs (10,000 units x $6 per unit) Contribution margin (10,000 units x $4 per unit) Fixed costs 567890123 10 Income 11 12 Required: 1. The 10,000 units produced and sold increases to 10,400 units and fixed 14 costs increase by $5,000. 15 (Use cells A5 to F13 from the given information to complete this question.) 16 margin per unit $100,000 10,000 $10 $6 60,000 40,000 30,000 $10,000 Units Increase in fixed costs 10,400 $5,000 17 Contribution Margin Income Statement 18 Sales 19 Variable costs 20 Contribution margin 21 Fixed costs 22 Income (loss) $4 A B C D E 13 14 1. The 10,000 units produced and sold increases to 10,400 units and fixed costs increase by $5,000. 15 (Use cells A5 to F13 from the given information to complete this question.) 16 17 18 Sales Contribution Margin Income Statement 20 19 Variable costs Contribution margin 21 Fixed costs 22 Income (loss) 23 Units Increase in fixed costs 10,400 $5,000 A B increase by 8%. Hint: A unit increase has both a sales and costs impact. 25 26 (Use cells A5 to F25 from the given information to complete this question.) 27 28 29 Sales Contribution Margin Income Statement 31 32 30 Variable costs Contribution margin Fixed costs 33 Income (loss) 34 35 3. Fixed costs increase by $20,000, variable costs per unit decrease by $2, 36 and units produced and sold increase by 500. 37 38 (Use cells A5 to F37 from the given information to complete this question.) 39 40 41 Sales 42 Variable costs 43 Contribution Margin Income Statement Contribution margin 44 Fixed costs 45 Income (loss) C D Decrease in E Increase in F G selling price units produced and sold 5% 8% Increase in fixed costs Decrease in variable cost per unit Increase in number of units produced and sold $20,000 $2 500