Sheridan 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 $1,368,000 $24.00 Variable expenses 456,000 8.00 Contribution margin 912,000 $16.00 Fixed expenses 175,000 Operating income $737,000

(b) The sales price increases by 12% and the variable cost per unit increases by 6%

c The price decreases by 5% and sales volume increases by 15%

d Fixed expenses increase by $40000

3 The sales price increases by 12%, variable cost per unit increases by 15%, fixed expenses increase by $30000 and sales volume decreases by 15%