Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Aladin Company Manufactures small battery that is used in clocks, toys and some other electronic devices. The last month's income statement of Aladin is given

Aladin Company Manufactures small battery that is used in clocks, toys and some other electronic devices. The last month's income statement of Aladin is given below:

Total

Per Unit

Sales (30,000 batteries)

$300,000

$10

Less variable expenses

$180,000

$6

Contribution Margin

$120,000

$4

Fixed expenses

$100,000

Net operating income

$20,000

Required:

Make adin's new income statement under each of the following conditions:

1. The sales colume increase by 15%.

2. The selling price decreases by 20% per unit, and the sales volume increase by 30%.

3. The selling price increases by 50% per unit, fixed expenses increase by $20,000 and the sales volume decreases by 5%.

4. Variable expenses increases by 20% per unit, the selling price increase by 12%, and the sales volume decrease by 10%.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry J Weygandt

10th Edition

1118009282, 9781118009284

More Books

Students also viewed these Accounting questions

Question

main.pl

Answered: 1 week ago

Question

6. How can hidden knowledge guide our actions?

Answered: 1 week ago