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Need help with B, C, and D. Sheridan Markets imports and sells small bear-shaped pinatas. In planning for the coming year, the company's owner is
Need help with B, C, and D.
Sheridan Markets imports and sells small bear-shaped pinatas. 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: Per Unit Total $936,000 Sales revenue $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 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 967,824 $ 26.4 Variable expenses 366 600 10 Contribution margin 601.224 S 16.4 Fixed expenses 175.000 Operating income 426.224 (b). The sales price increases by 8% and variable cost per unit increases by 6%. (Round per unit answers to 2 decimal places, eg. 0.38.) Sheridan Markets Income Statement Total Per Unit Sales $ Variable expenses Contribution margin $ Fixed expenses Operating income (c) The sales price decreases by 5% and sales volume increases by 15%. (Round per unit answers to 2 decimal places, eg 0.38) Sheridan Markets Income Statement Total Per Unit Sales Variable expenses Contribution margin Fixed expenses Operating income (d) Fixed expenses increase by $40,000. (Round per unit answers to 2 decimal places, eg, 0.38.) Sheridan Markets Income Statement Total Per Unit Sales $ $ Variable expenses Contribution margin $ Fixed expenses Operating income Step by Step Solution
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