Question

CB Markets imports and sells small bear-shaped piñatas. 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 independently. Last year's income statement is as follows:


Required
a. The sales price increases by 10% and sales volume decreases by 5%.
b. The sales price increases by 10% and variable cost per unit increases by 5%.
c. The sales price decreases by 10% and sales volume increases by 20%.
d. Fixed expenses increase by $20,000.
e. The sales price increases by 10%, variable cost per unit increases by 10%, fixed expenses increase by $25,000, and sales volume decreases by10%.


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  • CreatedFebruary 21, 2014
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