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A manufacturers contribution margin income statement for the year follows. Prepare contribution margin income statements for each of the three separate cases below. Contribution Margin

A manufacturers 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 (11,500 units $12 per unit) $ 138,000
Variable costs (11,500 units $7 per unit) 80,500
Contribution margin (11,500 units $5 per unit) 57,500
Fixed costs 48,000
Income $ 9,500
  1. The 11,500 units sold and produced increases to 12,000 units and fixed costs increase by $6,100.
  2. Unit selling price decreases by 5% and units sold and produced increase by 6%. Hint: A unit increase has both a sales and costs impact.
  3. Fixed costs increase by $21,100, variable costs per unit decrease by $2, and units sold and produced increase by 600.

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