GIVEN DATA:

SOLUTIONS

Sales units

$500$

bicycles

Required:

Part $1$

Complete the per unit and $\%$ columns of the contribution format income statement

Part $2$

$\backslash$table$[[$Estimate operating income if Racing Bicycles sells,$430$ bicycles$]]$

Part $3$

How much will contribution margin increase if sales increase by

Part $4$

Increase in sales units $(500$ to $540)$

Increase in monthly Advertising

Part $5$

Increase in variable costs per unit

Sales units

Part $6$

Reduction in selling price per bicycle

Increase in monthly Advertising

Sales units

Part $7$

Sales commission per bicycle sold

Decrease in sales salaries

Sales units

Part $8$

Sales units

Increase in monthly operating income