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Crane 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
Crane 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 Per Unit Sales revenue $630,000 $15.00 Variable expenses 378,000 9.00 Contribution margin 252,000 $6.00 Fixed expenses 175,000 Operating income $77,000 (a) Your answer is partially correct. The sales price increases by 12% and sales volume decreases by 6%. (Round per unit answers to 2 decimal places, e.g. 0.38.)
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