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ACC 212 MANAGERIAL ACCOUNTING SECTION 1 H-11 Fisher Company's most recent income statement is shown below: TOTAL I PER UNIT 600,000 360,000 240,000 Sales (15,000
ACC 212 MANAGERIAL ACCOUNTING SECTION 1 H-11 Fisher Company's most recent income statement is shown below: TOTAL I PER UNIT 600,000 360,000 240,000 Sales (15,000 units) Less: Variable expenses Contribution margin Less Fixed Expenses Net Income 40 24 16 180,000 60,000 REQUIRED: Calculate the impact on net income of each of the following conditions (consider each case independently) using the incremental contribution margin approach (1) The sales volume decreases by 8% (2) The selling price decreases by $2 per unit, and the sales volume increases by 16% (3) The selling price increases by $5 per unit, variable costs increase be $1, fixed expenses increase by $60,000, and the sales volume increases by 3% (4) Variable expenses increase by 80 cents per unit, the selling price increases by 4%, and the sales volume decreases by 5% ACC 212 MANAGERIAL ACCOUNTING SECTION 1 H-11 Fisher Company's most recent income statement is shown below: TOTAL I PER UNIT 600,000 360,000 240,000 Sales (15,000 units) Less: Variable expenses Contribution margin Less Fixed Expenses Net Income 40 24 16 180,000 60,000 REQUIRED: Calculate the impact on net income of each of the following conditions (consider each case independently) using the incremental contribution margin approach (1) The sales volume decreases by 8% (2) The selling price decreases by $2 per unit, and the sales volume increases by 16% (3) The selling price increases by $5 per unit, variable costs increase be $1, fixed expenses increase by $60,000, and the sales volume increases by 3% (4) Variable expenses increase by 80 cents per unit, the selling price increases by 4%, and the sales volume decreases by 5%
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