LAND FIRE In. manufactures small batteries devices used in clocks, toys, and some other electronic devices....
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LAND FIRE In. manufactures small batteries devices used in clocks, toys, and some other electronic devices. The last month's income statement of LAND FIRE is given below: TOTAL PER UNIT Sales $ 335.200 $ 12 Variable expenses 193.525 8 Contribution margin 141.675 Fix expenses 122.375 Net operating income $ 19.300 Required: Prepare LAND FIRE new income statement under each of the following conditions: 1. The sales volume increases by 15%. 2. The selling price decreases by 20% per unit, and the sales volume increases by 30%. 3. The selling price increases by 50% per unit, fixed expenses increase by $20,000 and the sales volume decreases by 5%. 4. Variable expenses increase by 20% per unit, the selling price increases by 12%, and the sales volume decreases by 10%. LAND FIRE In. manufactures small batteries devices used in clocks, toys, and some other electronic devices. The last month's income statement of LAND FIRE is given below: TOTAL PER UNIT Sales $ 335.200 $ 12 Variable expenses 193.525 8 Contribution margin 141.675 Fix expenses 122.375 Net operating income $ 19.300 Required: Prepare LAND FIRE new income statement under each of the following conditions: 1. The sales volume increases by 15%. 2. The selling price decreases by 20% per unit, and the sales volume increases by 30%. 3. The selling price increases by 50% per unit, fixed expenses increase by $20,000 and the sales volume decreases by 5%. 4. Variable expenses increase by 20% per unit, the selling price increases by 12%, and the sales volume decreases by 10%.
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Answer rating: 100% (QA)
sales volume increases by 15 total per unit sales 32123 units 385476 12 less variable expenses ... View the full answer
Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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