CB Markets imports and sells small bear-shaped piatas. Last years income statement is as follows: In planning

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

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. Each scenario should be applied independently to the original data.

Required

a. The sales price increases by 12% and sales volume decreases by 4%.

b. The sales price increases by 8% and variable cost per unit increases by 6%.

c. The sales price decreases by 5% and sales volume increases by 15%.

d. Fixed expenses increase by $40,000.

e. The sales price increases by 12%, variable cost per unit increases by 15%, fixed expenses increase by $30,000, and sales volume decreases by 15%.

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Total Per Unit Sales revenue $600,000 $15.00 Variable expenses Contribution margin Fixed expenses Operating income 320,000 8.00 280,000 $ 7.00 175,000 $105,000