A manufacturer's contribution margin income statement for the year follows. Prepare contribution margin income statements for of the three separate cases below. Contribution Margin Income Statement Sales (12,000 units $11 per unit) Variable costs (12,000 units $6 per unit) Contribution margin (12,000 units x $5 per unit Fixed costs Income $ 132,000 72,000 60,000 44,000 $ 16,000 1. The 12,000 units produced and sold increases to 12,500 units and fixed costs increase by $5,900. 2. Unit selling price decreases by 5% and units produced and sold increase by 7%. Hint: A unit increase has both a sales and cos impact. 3. Fixed costs increase by $20,900, variable costs per unit decrease by $2, and units produced and sold increase by 600. 1. The 12,000 units produced and sold increases to 12,500 units and fixed costs increase by $5,900. Sales Contribution Margin Income Statement Variable costs Contribution margin Fixed costs Income (loss) 132,000 72,000 60,000 44,000 $ 16,000 2. Unit selling price decreases by 5% and units produced and sold increase by 7%. Sales Contribution Margin Income Statement Variable costs Contribution margin Fixed costs Income (loss) $ 0