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a) Using the listed assumptions, create a Contribution Income Statement (Points Note: Use the format outlined in 1 e) as an example Selling Price -
a) Using the listed assumptions, create a Contribution Income Statement (Points Note: Use the format outlined in 1 e) as an example Selling Price - Variable Manufacturing costs - Fixed Manufacturing costs - Variable Selling costs - Fixed Selling costs - Variable Administration costs - Fixed Administration costs - Tax rate - Units - $30 per unit $11.00 per unit $70,000 $4.00 per unit $12,000 $3.00 per unit $13,000 35% 10,000 b) From the price and cost assumptions in (a) and the additional information listed below, identify what sales volume (# of units) is required to provide an after-tax profit of $14,300 (Points 15): - The company renegotiated their lease with their landlord and decreased fixed costs by $15,000. - Variable costs increased by $1.00 as a result of a price increase from a major supplier - As a result of the supplier cost increase, the company raised their unit selling price by $5.00
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