White Limiteds most recent income statement is shown below:

Total Per Unit

Sales (5,500 units) $ 220,000 $ 40

Variable expenses 82,500 15

Contribution margin 137,500 $ 25

Fixed expenses 118,750

Operating income $ 18,750

Required:

Prepare a new contribution format income statement under each of the following conditions (consider each case independently):

1. The sales volume increases by 260 units.

2. The sales volume declines by 260 units.

3. The sales volume is 4,750 units.