lossom Markets imports and sells small bear-shaped piatas. In planning for the coming year, the companys 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 years 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

A. The sales price increases by 10% and sales volume decreases by 4%.

B, The sales price increases by 10% and variable cost per unit increases by 6%.

C. The sales price decreases by 5% and sales volume increases by 15%.

D. Fixed expenses increase by $50,000

E. The sales price increases by 12%, variable cost per unit increases by 15%, fixed expenses increase by $30,000, and sales volume decreases by 15%