JenSteel, Inc., had the following results for last year:

Prepare a new income statement for each of the following scenarios. Assume each scenario is applied  independently to the original data.

Required

a. Sales volume increases by 10%.

b. The sales price decreases by 5%.

c. Variable costs per unit decrease by $1.50.

d. The sales price decreases to $38, and an additional 6,000 units are sold.

e. A new advertising campaign costing $90,000 increases sales volume by 10%.

f. Variable costs per unit increase by $3.00, the sales price per unit increases by $4.00, sales volume decreases by 2,000 units, and fixed expenses increase by $15,000.

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Total Per Unit Sales revenue $2,000,000 $40.00 Variable expenses Contribution margin Fixed expenses Operating income 1,250,000 25.00 750,000 $15.00 400,000 $ 350,000