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2 A manufacturer's contribution margin income statement for the year follows. Prepare contribution margin income statements for each of the three separate cases below. 3 4 5 Contribution Margin Income Statement 6 7 Sales (10,000 units x $10 per unit) Variable costs (10,000 units x $6 per unit) Contribution margin (10,000 units x $4 per unit) 8 9 Fixed costs 10 Income 11 12 Required: 13 $100,000 60,000 40,000 17 18 Sales 19 Variable costs 20 Contribution margin 21 Fixed costs 22 Income (loss) 23 30,000 $10,000 1. The 10,000 units produced and sold increases to 10,400 units and fixed 14 costs increase by $5,000. 15 (Use cells A5 to F13 from the given information to complete this question.) 16 Contribution Margin Income Statement Units 10,000 Units 10,400 Selling price per unit $10 Increase in fixed costs $5,000 Variable cost Contribution margin per per unit unit $6 $4 F46 X Calibri A B 24 2. Unit selling price decreases by 5% and units produced and sold increase by 8%. Hint: A unit increase has both a sales and costs impact. 25 26 (Use cells A5 to F25 from the given information to complete this question.) 27 Contribution Margin Income Statement 28 29 Sales 30 Variable costs 31 Contribution margin BY 45 Income (loss) 46 32 Fixed costs 33 Income (loss) 34 35 36 37 38 (Use cells A5 to F37 from the given information to complete this question.) 39 40 Contribution Margin Income Statement 41 Sales 42 Variable costs 43 Contribution margin 44 Fixed costs 3. Fixed costs increase by $20,000, variable costs per unit decrease by $2, and units produced and sold increase by 500. Graded Worksheet + C D 1010 Decrease in selling price Increase in fixed costs 5% $20,000 E Increase in units produced and sold 8% Decrease in variable cost per unit $2 General