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 (12,500 units x $11 per unit) Variable costs (12,500 units * $7 per unit) Contribution margin (12,500 units x $4 per unit Fixed costs Income $ 137,500 87,500 50,000 32,000 $ 18,000 1. The 12,500 units produced and sold increases to 13,000 units and fixed costs increase by $6,000. 2. Unit selling price decreases by 3% and units produced and sold increase by 8%. Hint: A unit increase has both a sales and costs impact. 3. Fixed costs increase by $21,000, variable costs per unit decrease by $2, and units produced and sold increase by 700. 1. The 12,500 units produced and sold increases to 13,000 units and fixed costs increase by $6,000. Contribution Margin Income Statement Contribution margin 0 Income (loss) $ 0 2. Unit selling price decreases by 3% and units produced and sold increase by 8%. Contribution Margin Income Statement Contribution margin 0 Income (loss) $ 0 3. Fixed costs increase by $21,000, variable costs per unit decrease by $2, and units produced and sold increase by 700. Contribution Margin Income Statement Contribution margin 0 Income (loss) $ 0