Sunland 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		$690,000		$15.00
Variable expenses		506,000		11.00
Contribution margin		184,000		$4.00
Fixed expenses		100,000
Operating income		$84,000

(a)

The sales price increases by10% and sales volume decreases by6%. (Round per unit answers to 2 decimal places, e.g. 0.38.)

Sunland Markets Income Statement
		Total		Per Unit
Sales		$enter a dollar amount		$enter a dollar amount rounded to 2 decimal places
Variable expenses		enter a dollar amount		enter a dollar amount rounded to 2 decimal places
Contribution margin		enter a total dollar amount		$enter a total dollar amount rounded to 2 decimal places
Fixed expenses		enter a dollar amount
Operating income		$enter a total dollar amount

(b)

The sales price increases by8% and variable cost per unit increases by6%.(Round per unit answers to 2 decimal places, e.g. 0.38.)

Sunland Markets Income Statement
		Total		Per Unit
Sales		$enter a dollar amount		$enter a dollar amount rounded to 2 decimal places
Variable expenses		enter a dollar amount		enter a dollar amount rounded to 2 decimal places
Contribution margin		enter a total dollar amount		$enter a total dollar amount rounded to 2 decimal places
Fixed expenses		enter a dollar amount
Operating income		$enter a total dollar amount

(c)

The sales price decreases by5% and sales volume increases by15%.(Round per unit answers to 2 decimal places, e.g. 0.38.)

Sunland Markets Income Statement
		Total		Per Unit
Sales		$enter a dollar amount		$enter a dollar amount rounded to 2 decimal places
Variable expenses		enter a dollar amount		enter a dollar amount rounded to 2 decimal places
Contribution margin		enter a total dollar amount		$enter a total dollar amount rounded to 2 decimal places
Fixed expenses		enter a dollar amount
Operating income		$enter a total dollar amount

(d)

Fixed expenses increase by $50,000.(Round per unit answers to 2 decimal places, e.g. 0.38.)

Sunland Markets Income Statement
		Total		Per Unit
Sales		$enter a dollar amount		$enter a dollar amount rounded to 2 decimal places
Variable expenses		enter a dollar amount		enter a dollar amount rounded to 2 decimal places
Contribution margin		enter a total dollar amount		$enter a total dollar amount rounded to 2 decimal places
Fixed expenses		enter a dollar amount
Operating income		$enter a total dollar amount

(e)

The sales price increases by12%, variable cost per unit increases by15%, fixed expenses increase by $30,000, and sales volume decreases by15%.(Round per unit answers to 2 decimal places, e.g. 0.38.)

Sunland Markets Income Statement
		Total		Per Unit
Sales		$enter a dollar amount		$enter a dollar amount rounded to 2 decimal places
Variable expenses		enter a dollar amount		enter a dollar amount rounded to 2 decimal places
Contribution margin		enter a total dollar amount		$enter a total dollar amount rounded to 2 decimal places
Fixed expenses		enter a dollar amount
Operating income		$enter a total dollar amount