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White Limiteds most recent income statement is shown below: Total Per Unit Sales (5,000 units) $ 150,000 $ 30 Variable expenses 50,000 10 Contribution margin
White Limiteds most recent income statement is shown below:
Total | Per Unit | |||||
Sales (5,000 units) | $ | 150,000 | $ | 30 | ||
Variable expenses | 50,000 | 10 | ||||
Contribution margin | 100,000 | $ | 20 | |||
Fixed expenses | 85,000 | |||||
Operating income | $ | 15,000 | ||||
Required:
Prepare a new contribution format income statement under each of the following conditions (consider each case independently):
1. The sales volume increases by 210 units.
2. The sales volume declines by 210 units.
3. The sales volume is 4,250 units.
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