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Cullumber Profles provides testing services to school districts that wish to assess students' reading and mathematical abilities. Last year Cullumber evaluated 84,000 math tests and
Cullumber Profles provides testing services to school districts that wish to assess students' reading and mathematical abilities. Last year Cullumber evaluated 84,000 math tests and 28,000 reading tests. An income statement for last year follows. Math Testing Reading Testing Total Total Per Unit Total Per Unit Company Sales revenue $2,520,000 $30 $1,288,000 $46 $3,808,000 1.764,000 21 Variable expenses 23 644,000 2,408,000 $756,000 $9 $644,000 $23 Contribution margin 1,400,000 778,400 Fixed expenses $621,600 Operating income In an effort to raise the demand for reading tests, managers are planning to lower the price from $46 per test to $30 per test, the current price of the math test. They believe that doing so will increase the demand for reading tests to 84.000. Prepare a contribution format income statement reflecting Cullumber's new pricing and demand structure Cullumber Profiles Contribution Income Statement Math Testing Reading Testing Total Per Unit Total Per U $ $ s PPPP A $ $ $
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