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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
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 (13,000 units x $13 per unit) Variable costs (13,000 units x $8 per unit) Contribution margin (13,000 units x $5 per unit Fixed costB $ 169,000 104,000 65,000 47,000 $ 18,000 Income 1. The 13,000 units produced and sold increases to 13,500 units and fixed costs increase by $5,500. 2. Unit selling price decreases by 5% and units produced and sold increase by 6%. Hint: A unit increase has both a sales and costs impact. 3. Fixed costs Increase by $20,500, variable costs per unit decrease by $2, and units produced and sold increase by 300. 1. The 13,000 units produced and sold increases to 13,500 units and fixed costs increase by $5,500. Contribution Margin Income Statement Contribution margin Income (loss) 2. Unit selling price decreases by 5% and units produced and sold increase by 6%. Contribution Margin Income Statement Contribution margin Income (loss) $ 3. Fixed costs increase by $20,500, variable costs per unit decrease by $2, and units produced and sold increase by 300. Contribution Margin Income Statement Contribution margin Income (loss)
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