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Glass Inc. has the following information for August 2015: Selling price $ 27 per unit Variable expenses $ 18 per unit Fixed expenses $ 8,010

Glass Inc. has the following information for August 2015:

Selling price

$ 27

per unit

Variable expenses

$ 18

per unit

Fixed expenses

$ 8,010

per month

Actual Units Sold

1,040

Required:

Prepare a Contribution Income Statement with the data provided.

If they spend an extra $1,000 a month in advertising, sales will increase by 100 units. Prepare a new Contribution Income Statement. Would their operating income increase or decrease?

If they decrease the selling price from $27 to $23, sales volume would increase by 50%. Prepare a new Contribution Income Statement. Would their operating income increase or decrease?

-Must show all calculations

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