A manufacturer's contribution margin income statement for the year follows. Prepare contribution margin income statements for each of the three separate cases below. Contribution Margin Income Statement Sales (14,000 units $12 per unit) Variable costs (14,000 units $7 per unit) Contribution margin (14,000 units x $5 per unit) Fixed costs Income $ 168,000 98,000 70,000 57,000 $ 13,000 1. The 14,000 units sold and produced increases to 14,500 units and fixed costs increase by $6,300. 2. Unit selling price decreases by 5% and units sold and produced increase by 8%. Hint: A unit increase has both a sales and costs impact. 3. Fixed costs increase by $16,100, variable costs per unit decrease by $1, and units sold and produced increase by 400. 1. The 14,000 units sold and produced increases to 14,500 units and fixed costs increase by $6,300. Contribution Margin Income Statement Contribution margin Income (loss) 2. Unit selling price decreases by 5% and units sold and produced increase by 8%. Contribution Margin Income Statement Contribution margin Income (loss) 3. Fixed costs increase by $16,100, variable costs per unit decrease by $1, and units sold and produced increase by 400. Contribution Margin Income Statement Contribution margin Income (loss)