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Porter Company s most recent contribution format income statement is shown below: Total Per Unit Sales (36,000 units) $252,000 $7.00 Variable expenses 180,000 5.00 Contribution
Porter Company s most recent contribution format income statement is shown below: |
Total | Per Unit | |
Sales (36,000 units) | $252,000 | $7.00 |
Variable expenses | 180,000 | 5.00 |
Contribution margin | 72,000 | $2.00 |
Fixed expenses | 45,000 | |
Net operating income | $ 27,000 | |
Required: |
Prepare a new contribution format income statement under each of the following conditions (consider each case independently): (Do not round intermediate calculations. Round your "Per unit" answers to 2 decimal places.) |
1. | The number of units sold increases by 19%. |
2. | The selling price decreases by 70 cents per unit, and the number of units sold increases by 21%. |
3. | The selling price increases by 50 cents per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 7%. |
4. | Variable expenses increase by 10 cents per unit, the selling price increases by 20%, and the number of units sold decreases by 14%. |
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