Question
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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