Crane Markets imports and sells small bear-shaped piatas. In planning for the coming year, the companys 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 years income statement is as follows:

		Total		Per Unit
Sales revenue		$544,000		$17.00
Variable expenses		160,000		5.00
Contribution margin		384,000		$12.00
Fixed expenses		100,000
Operating income		$284,000

(a)

The sales price increases by 10% and sales volume decreases by 5%. (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

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(b)

The sales price increases by 12% 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