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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

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

(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

(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

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