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a. The sales price increases by 10% and sales volume decreases by 6%. b. The sales price increases by 12% and variable cost per unit
a. The sales price increases by 10% and sales volume decreases by 6%.
b. The sales price increases by 12% and variable cost per unit increases by 6%.
c. The sales price decreases by 5% and sales volume increases by 15%.
d. Fixed expenses increase by $40,000.
e. The sales price increases by 12%, variable cost per unit increases by 15%, fixed expenses increase by $30,000, and sales volume decreases by 15%.
Cullumber Markets imports and sells small bear-shaped piatas. In planning for the coming year, the company's owner is evaluating several scenarios. For each scenario under consideration, prepare a contribution margin income statement showing the anticipated operating income. Consider each scenario is applied independently to the original data. Last year's income statement is as follows: Total Per Unit Sales revenue $756,000 $21.00 Variable expenses 324,000 9.00 Contribution margin 432,000 $12.00 Fixed expenses 175,000 Operating income $257,000Step by Step Solution
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