a and b

Chapter 06 Cost-Volume-Profit Relationships 1. Webster company has provided the following data: Sales 3.000 units Sales Price $70 per unit Variable cost $ 50 per unit Fixed cost $25,000 a. Prepare a Contribution Income statement based upon the above information [10 points) b. Prepare a Contribution Income Statement based upon the above information assuming the following changes: sales volume (units) decreases by 25%, and the variable cost per unit increases by 15%, and all other factors remain the same, net operating income will be: [10 points)