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Ivanhoe 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
Ivanhoe 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 $880,000 $22.00 Variable expenses 480,000 12.00 Contribution margin 400,000 $10.00 Fixed expenses 175,000 Operating income $225,000 The sales price increases by 10% and sales volume decreases by 4%. (Round per unit answers to 2 decimal places, e.g. 0.38.) Sales Variable expenses Contribution margin Fixed expenses +A $ Operating income $ Ivanhoe Markets Income Statement Total Per Unit The sales price increases by 12% and variable cost per unit increases by 6%. (Round per unit answers to 2 decimal places, e.g. 0.38.) Sales Variable expenses Contribution margin Fixed expenses +A $ Ivanhoe Markets Income Statement Total Operating income $ +A +A Per Unit The sales price decreases by 5% and sales volume increases by 15%. (Round per unit answers to 2 decimal places, e.g. 0.38.) Sales Ivanhoe Markets Income Statement Variable expenses Contribution margin Fixed expenses Operating income Total +A +A +A Per Unit
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