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Sandhill Markets imports and sells small bear-shaped piatas. In planning for the coming year, the company's owner is evaluating several scenarios. For each scenario under
Sandhill Markets imports and sells small bear-shaped piatas. 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: Total Per Unit Sales revenue $780,000 $15.00 Variable expenses 520,000 10.00 Contribution margin 260,000 $5.00 Fixed expenses 175,000 Operating income $85,000 The sales price increases by 10% and variable cost per unit increases by 6%. (Round per unit answers to 2 decimal places, e.g. 0.38.) Sandhill Markets Income Statement Sales Total 780000 Variable expenses 520000 Contribution margin 260000 Fixed expenses 215000 Operating income $ 45000 Per Unit 15 10 +A $ 5 The sales price decreases by 5% and sales volume increases by 15%. (Round per unit answers to 2 decimal places, e.g. 0.38.) Sandhill Markets Income Statement Total Per Unit Sales Variable expenses Contribution margin Fixed expenses $ Operating income $ +A +A $ Fixed expenses increase by $40,000. (Round per unit answers to 2 decimal places, e.g. 0.38.) Sandhill Markets Income Statement Total Per Unit Sales Variable expenses Contribution margin Fixed expenses Operating income +A $ The sales price increases by 12%, variable cost per unit increases by 15%, fixed expenses increase by $30,000, and sales volume decreases by 15%. (Round per unit answers to 2 decimal places, e.g. 0.38.) Sandhill Markets Income Statement Total Per Unit Sales +A 852150 +A Variable expenses 520000 Contribution margin 332150 Fixed expenses 175000 Operating income 157150 +A 14.25 10 4.25
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