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Need help! Sheridan Markets imports and sells small bear-shaped piatas. In planning for the coming year, the company's owner is evaluating several scenarios. For each
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Sheridan 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 $936,000 $24.00 Variable expenses 390,000 10.00 Contribution margin 546,000 $14.00 Fixed expenses 175,000 Operating income $371.000 (a) Your answer is partially correct. The sales price increases by 10% and sales volume decreases by 6%. (Round per unit answers to 2 decimal places es. 0.38) Sheridan Markets Income Statement Total Per Unit Sales 966,240 $ 264 Variable expenses 366.000 10 Contribution margin 600.240 S 164 Fixed expenses 175.000 Operating income 425.240 Step by Step Solution
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