PART B: "WHAT IF" CVP ANALYSIS DESCRIPTION TOTAL PER UNIT Sales Revenue (Sold 14,000 Units) $700,000 $50 Variable Expenses $315,000 $22.50 Contribution Margin $385,000 $27.50 Fixed Expenses $250,250 Operating Income $134,750 Cleveland's managers have determined that the following changes will impact their current contribution margin income statement (shown above) 1. Variable costs per unit will increase by 20% beginning next month. 2. To offset this increase in costs, they are considering a 12% increase in the sales price per unit. 3. Market research indicates that the price increase will result in a 2% decrease in the number of learning systems Cleveland sells. Using the information provided above, show how the three changes will impact the company by completing the revised Contribution Margin Income Statement. DESCRIPTION SALES REVENUE VARIABLE COSTS SHOW YOUR WORK AMOUNT