Relevant Information
	Skin Cream				Bath Oil				Color Gel
Budgeted sales in units (a)		114,000				194,000				74,000
Expected sales price (b)	$	10			$	7			$	13
Variable costs per unit (c)	$	2			$	2			$	7
Income statements
Sales revenue (a b)	$	1,140,000			$	1,358,000			$	962,000
Variable costs (a c)		(228,000	)			(388,000	)			(518,000	)
Contribution margin		912,000				970,000				444,000
Fixed costs		(624,000	)			(650,000	)			(126,000	)
Net income	$	288,000			$	320,000			$	318,000

Required:

Prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume.

FRANKLIN COMPANY
Income Statements
	Skin Cream	Bath Oil	Color Gel
Sales revenue
Variable costs
Contribution margin	$0	$0	$0
Fixed cost	624,000	650,000	126,000
Net income	$(624,000)	$(650,000)	$(126,000)