Mendina, Incorporated produces an advanced type of coffee maker. Information about the coffee maker is below:

Total Variable Cost at $450$ units $$54,000$

Total Cost per Unit $$235\mathrm{.}00$

Sales Price $$270$

Target Profit $$120,000$

Required:

Fill in the chart and then use it to answer the questions.

Volume $2004501100$

Per Unit Cost

Variable Cost per Unit $120\mathrm{.}00120\mathrm{.}00120\mathrm{.}00$

Fixed Cost per Unit $258\mathrm{.}75115\mathrm{.}0047\mathrm{.}05$

Total Cost per Unit $378\mathrm{.}75235\mathrm{.}00167\mathrm{.}05$

Total Cost

Variable Cost $24,00054,000132,000$

Fixed Cost $51,75051,75051,750$

Total Costs $75,750105,750183,750$

Contribution Margin $150$

Contribution Margin Ratio $55\mathrm{.}6\%$

Break Even Units $345$

Break Even Dollars $$93,150$

Target Profit Units $1,145$

Target Profit $ $$309,150$

Use the information above to create a Contribution Format Income Statement.

Units Produced: $1,500$

Volume

Sales

Variable Cost

Contribution Margin

Fixed Cost

Net Operating Income

Margin of Safety units

Margin of Safety $

Margin of Safety $\%$

Degree of Operating Leverage

Using the completed statement as a base, create new statements under each parameter independently.

Hint: Use the information from the Base Statement or column B of the chart for formulas.

Sales Increase: $15\%$

Volume

Sales

Variable Cost

Contribution Margin

Fixed Cost

Net Operating Income

Price Increases: $$20$

Volume

Sales

Variable Cost

Contribution Margin

Fixed Cost

Net Operating Income

Variable Cost Increases: $10\%$

Volume

Sales

Variable Cost

Contribution Margin

Fixed Cost

Net Operating Income

Fixed Costs Are Reduced: $40\%$

Volume

Sales

Variable Cost

Contribution Margin

Fixed Cost

Net Operating Income

Price Decreases: $$25$

Volume Increases: $15\%$

Volume

Sales

Variable Cost

Contribution Margin

Fixed Cost

Net Operating Income