SMC Inc. is a producer of hand-held electronic games. Its 2000 income statement was as follows:

In preparing its budget for 2001, SMC is evaluating the effects of changes in costs, prices, and volume on income.
Required:
Evaluate the following independent cases, and determine SMC's 2001 budgeted income or loss in each case. (Assume that 2000 figures apply unless stated otherwise.)
1. Fixed costs increase $\$ 150,000$.
2. Fixed costs decrease $\$ 100,000$.
3. Variable costs increase $\$ 3$ per unit.
4. Variable costs decrease $\$ 4$ per unit.
5. Sales price increases $\$ 5$ per unit.
6. Sales price decreases $\$ 5$ per unit.
7. Sales volume increases 25,000 units.
8. Sales volume decreases 15,000 units.
9. Sales price decreases $\$ 4$ per unit, sales volume increases 40,000 units, and variable costs decrease by $\$ 2.50$ per unit.
10. Fixed costs decrease by $\$ 100,000$, and variable costs increase $\$ 4$ per unit.
11. Sales volume increases 30,000 units, with a decrease in sales price of $\$ 2$ per unit. Variable costs drop $\$ 1.50$ per unit, and fixed costs increase $\$ 50,000$.

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SMC Inc. Contribution Margin Income Statement For the Year Ended December 31, 2000 Sales revenue (150,000 games) Less variable costs... Contribution margin.. Less fixed costs Income... Total Per Unit $5,250,000 3,750,000 $35 25 $10 $1,500,000 900,000 $ 600,000