# Question

Kelly Company’s most recent contribution format income statement is shown below:

Required:

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

1. The number of units sold increases by 30%.

2. The selling price decreases by $1 per unit, and the number of units sold increases by 20%.

3. The selling price increases by $1 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 10%.

4. Variable expenses increase by 60 cents per unit, the selling price increases by 15%, and the number of units sold decreases by 15%.

Required:

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

1. The number of units sold increases by 30%.

2. The selling price decreases by $1 per unit, and the number of units sold increases by 20%.

3. The selling price increases by $1 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 10%.

4. Variable expenses increase by 60 cents per unit, the selling price increases by 15%, and the number of units sold decreases by 15%.

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