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ACC 202 Chapter 6 Open-Ended Assignment Note: Please put your answers only in the section below the Bold Red sentence at the end of the
ACC 202 Chapter 6 Open-Ended Assignment Note: Please put your answers only in the section below the Bold Red sentence at the end of the Required section below. NoMam Company has monthly fixed costs totaling $190,000 and variable cost of $42 per unit. Each unit of product is sold for $51. NoMam expects to sell 30,000 units each month (this is the base case). Required: A. Prepare a contribution margin income statement for the base case. B. Assuming the units sold remains at 30,000 , what would the operating profit be if the unit sales price decreases 15% ? C. Assuming the units sold remains at 30,000 , what would the operating profit be if the unit variable cost increases 5% ? D. Assuming the units sold remains at 30,000 , what would the operating profit be if the total fixed costs increase 10% ? Your answers to this open-ended assignment should be placed in the space below this line. A Contribution Margin Income Statement for the Base Case Sales Variable costs Contribution Margin Fixed costs Operating Profit B Contribution Margin Income Statement with 15\% Decrease in Unit Sales Price Sales Variable costs Contribution Margin Fixed costs Operating Profit C Contribution Margin Income Statement with Increase in Variable Cost of 5% Sales Variable costs Contribution Margin Fixed costs Operating Profit D Contribution Margin Income Statement with Increase in Fixed Cost of 10% Sales Variable costs Contribution Margin Fixed costs Operating Profit
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