Question
Blossom 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
Blossom 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 Sales revenue $864,000; Per Unit $18.00
Total Variable expenses 528,000; Per Unit $11.00
Total Contribution margin 336,000; Per Unit $7.00
Total Fixed expenses 175,000
Total Operating income $161,000
Solve Problem: The sales price increases by 10% and sales volume decreases by 4%. (Round per unit answers to 2 decimal places, e.g. 0.38.)
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