Question
I need assistance on figuring out this problem. Blossom Markets imports and sells small bear-shaped piatas. In planning for the coming year, the company's owner
I need assistance on figuring out this problem.
Blossom Markets imports and sells small bear-shaped piatas. In planning for the coming year, the company's 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 year's income statement is as follows: Total Per Unit Sales revenue $ 682,000 $ 22.00 Variable expenses 248,000 8.00 Contribution margin 434,000 $ 14.00 Fixed expenses 175,000 Operating income $ 259,000.
b.The sales price increases by10% and variable cost per unit increases by6%.(Round per unit answers to 2 decimal places, e.g. 0.38.)
c.The sales price decreases by5% and sales volume increases by15%.(Round per unit answers to 2 decimal places, e.g. 0.38.)
d.Fixed expenses increase by $ 50,000.(Round per unit answers to 2 decimal places, e.g. 0.38.)
e.The sales price increases by12%, variable cost per unit increases by15%, fixed expenses increase by $ 30,000, and sales volume decreases by15%.(Round per unit answers to 2 decimal places, e.g. 0.38.)
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