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).

The sales price increases by 12% and sales volume decreases by 6%. (Round per unit answers to 2 decimal places, e.g. 0.38.)

Crane Markets Income Statement
		Total		Per Unit
Sales		$ enter a dollar amount		$ enter a dollar amount rounded to 2 decimal places
Variable expenses		enter a dollar amount		enter a dollar amount rounded to 2 decimal places
Contribution margin		enter a total dollar amount		$ enter a total dollar amount rounded to 2 decimal places
Fixed expenses		enter a dollar amount
Operating income		$ enter a total dollar amount

B).

The sales price increases by 10% and variable cost per unit increases by 6%.(Round per unit answers to 2 decimal places, e.g. 0.38.)

Crane Markets Income Statement
		Total		Per Unit
Sales		$ enter a dollar amount		$ enter a dollar amount rounded to 2 decimal places
Variable expenses		enter a dollar amount		enter a dollar amount rounded to 2 decimal places
Contribution margin		enter a total dollar amount		$ enter a total dollar amount rounded to 2 decimal places
Fixed expenses		enter a dollar amount
Operating income		$ enter a total dollar amount

C).

The sales price decreases by 5% and sales volume increases by 15%.(Round per unit answers to 2 decimal places, e.g. 0.38.)

Crane Markets Income Statement
		Total		Per Unit
Sales		$ enter a dollar amount		$ enter a dollar amount rounded to 2 decimal places
Variable expenses		enter a dollar amount		enter a dollar amount rounded to 2 decimal places
Contribution margin		enter a total dollar amount		$ enter a total dollar amount rounded to 2 decimal places
Fixed expenses		enter a dollar amount
Operating income		$ enter a total dollar amount

D).

Fixed expenses increase by $ 40,000.(Round per unit answers to 2 decimal places, e.g. 0.38.)

Crane Markets Income Statement
		Total		Per Unit
Sales		$ enter a dollar amount		$ enter a dollar amount rounded to 2 decimal places
Variable expenses		enter a dollar amount		enter a dollar amount rounded to 2 decimal places
Contribution margin		enter a total dollar amount		$ enter a total dollar amount rounded to 2 decimal places
Fixed expenses		enter a dollar amount
Operating income		$ enter a total dollar amount

E)

The sales price increases by 12%, variable cost per unit increases by 15%, fixed expenses increase by $ 30,000, and sales volume decreases by 15%.(Round per unit answers to 2 decimal places, e.g. 0.38.)

Crane Markets Income Statement
		Total		Per Unit
Sales		$ enter a dollar amount		$ enter a dollar amount rounded to 2 decimal places
Variable expenses		enter a dollar amount		enter a dollar amount rounded to 2 decimal places
Contribution margin		enter a total dollar amount		$ enter a total dollar amount rounded to 2 decimal places
Fixed expenses		enter a dollar amount
Operating income		$ enter a total dollar amount