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 (13,500 units $12 per unit) Variable costs (13,500 units x $8 per unit) Contribution margin (13,500 units $4 per unit) Fixed costs Income 162,000 108,000 54,000 32,000 $ 22,000 1. The 13,500 units sold and produced increases to 14,000 units and fixed costs increase by $5,700. 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 $20,700, variable costs per unit decrease by $2, and units sold and produced increase by 600. 1. The 13,500 units sold and produced increases to 14,000 units and fixed costs increase by $5,700. Contribution margin Contribution Margin Income Statement 0 $ 0 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) 0 $