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The Monkey Bar Corps most recent contribution format income statement is shown below: SHOW YOUR WORK! Total Per unit Sales (10,000 units)....................... $500,000 $50 Variable
The Monkey Bar Corps most recent contribution format income statement is shown below:
SHOW YOUR WORK!
| Total | Per unit | |
Sales (10,000 units)....................... | $500,000 | $50 | |
Variable expenses.......................... | 330,000 | 33 | |
Contribution margin...................... | 170,000 | $ 17 | |
Fixed expenses.............................. | 95,000 | ||
Net operating income.................... | $ 75,000 |
Required:
Prepare a new contribution format income statement under each of the following conditions (consider each case independently)
- The sales volume increases by 15% and the price decreases by $2.00 per unit.
- The selling price increases by $3.00 per unit, fixed expenses increase by $20,000, and the sales volume decreases by 10%.
- The selling price increases by 30%, variable expense increases by $4.00 per unit, and the sales volume decreases by 15%.
- The selling price increases by $3.50 per unit, variable cost increases by $4.00 per unit, fixed expenses decrease by $35,000, and sales volume increases by 5%.
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