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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
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 (a) The sales price increases by 10% and sales volume decreases by 4%. (Round per unit answers to 2 decimal places, e.g. 0.38.) Sheridan Markets Income Statement Total Per Unit Sales $ $ Variable expenses Contribution margin $ Fixed expenses Operating income $
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