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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 under
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 $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 $ Variable expenses Contribution margin $ ta Fixed expenses Operating income ta $ (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 Variable expenses Contribution margin $ Fixed expenses Operating income (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 $ Variable expenses Contribution margin $ Fixed expenses Operating income $ (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 $ $ Variable expenses Contribution margin $ ta Fixed expenses Operating income $ (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 Variable expenses Contribution margin Fixed expenses Operating income ta
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