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3-30 CVP analysis (LO 3) SND, Inc., had the following results for last year: XLS Sales revenue Variable expenses Contribution margin Fixed expenses Operating income
3-30 CVP analysis (LO 3) SND, Inc., had the following results for last year: XLS Sales revenue Variable expenses Contribution margin Fixed expenses Operating income Per Unit $2,000,000 $20.00 12.50 7.50 1,250,000 750,000 400,000 $ 350,000 Prepare a new income statement for each of the following scenarios. Consider each scenario independently Required a. Sales volume decreases by 10% b, The sales price increases by 5% c. Variable costs per unit increase by $1.50 d. The sales price decreases to $18, and an additional 5,000 units are sold. e. A new advertising campaign costing $75,000 increases sales volume by 15% f. Variable costs per unit increase by $2.00, the sales price per unit increases by $1.50, sales volume decreases by 2,500 units, and fixed expenses increase by $20,000 118 CHAPTER 3 Cost-Volume-Profit Analysis and Pricing Decisions
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