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%.

Transcribed Image Text:

Per Unit Total Sales (60,000 units) Variable expenses.. Contribution margin.. Fixed expenses. Operating income.... $600,000 S10 ... 6 $ 4 240,000 100,000 $ 140,000