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MacNeil Company s most recent contribution format income statement is show below: Total Per Unit Sales ( 4 0 , 0 0 0 units )

MacNeil Companys most recent contribution format income statement is show below:
Total Per Unit
Sales (40,000 units) $800,000 $20
Variable Expenses $520,000 $13
Contribution Margin $280,000 $7
Fixed Expenses $120,000
Operating Income $160,000
Prepare a new contribution format income statement under each of the following conditions (consider
each case independently):
1. The number of units sold increase by 25%.
2. The selling price decreases by $2 per unit and the number of units sold increase by 30%
3. The selling price increases by $2 per unit and the fixed expenses increase by $35,000 and the
number of units sold decrease by 15%.
4. Variable expenses increase by 75 cents per unit, the selling price increases by 20% and the
number of units sold decreases by 5%.

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