Cullumber 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 $820,000 $20.00 Variable expenses 451,000 11.00 Contribution margin 369,000 $9.00 Fixed expenses 175,000 Operating income $194,000 (a) Partially correct answer icon Your answer is partially correct. The sales price increases by 10% and sales volume decreases by 6%. (Round per unit answers to 2 decimal places, e.g. 0.38.)

Cullumber 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 eTextbook and Media Attempts: 1 of 3 used (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.)

Cullumber 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 eTextbook and Media Attempts: 0 of 3 used (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.)

Cullumber 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 eTextbook and Media Attempts: 0 of 3 used (d) Fixed expenses increase by $40,000. (Round per unit answers to 2 decimal places, e.g. 0.38.)

Cullumber 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 eTextbook and Media Attempts: 0 of 3 used (e) The sales price increases by 12%, variable cost per unit increases by 20%, fixed expenses increase by $30,000, and sales volume decreases by 15%. (Round per unit answers to 2 decimal places, e.g. 0.38.)

Cullumber 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