CVP analysis-- JenSteel, Inc., had the following results for last year: Sales revenue Total $4,000,000 Per Unit $40.00 Variable expenses 2,500,000 25.00 Contribution margin 1,500,000 $15.00 Fixed expenses 800,000 Operating income Required Prepare a new income statement for the following scenario. 1. How many units are being sold at $4,000,00 of Sales? 2. Sales volume increases by 10%. How many units will be sold if the Sales Volume Increases by 10%? Units sold at original amount of Sales x 1.1 What is the increase in the Operating Income from the old Sales to the New Sales? Proof New Units Sold Less Original Units Sold =Difference X Unit Contribution Margin = Increase in Operating Income