3.30

Answer

a

b

c

d

e

e. What action(s) could Briggs take to achieve this new contribution margin? 3.30 (LO 3) Excel CVP analysis CB Markets imports and sells small bear-shaped piatas. Last year's income statement is as follows: Total Per Unit Sales revenue $600,000 $15.00 Variable expenses 320,000 8.00 Contribution margin 280,000 $ 7.00 Fixed expenses 175,000 Operating income $105,000 In planning for the coming year, the company's owner is evaluating several scenarios. For each scenario under consideration, prepare a contribution margin income statement showing the anticipated operating income. Each scenario should be applied independently to the original data. e. The sales price increases by 12%, variable cost per unit increases by 15%, fixed expenses increase by a. The sales price increases by 12% and sales volume decreases by 4%. b. The sales price increases by 8% and variable cost per unit increases by 6%. c. The sales price decreases by 5% and sales volume increases by 15%. d. Fixed expenses increase by $40,000. $30,000, and sales volume decreases by 15%. 21 (LO 3) Excel CVP analysis JenSteel, Inc., had the following result for Required