ABC Companys most recent contribution format income statement is shown below:

Total Per Unit

Sales (20,000 units) $300,000 $15

Less variable expenses 180,000 9

Contribution margin 120,000 6

Less fixed expenses 70,000 Net operating income $50,000

Required:

Prepare a new contribution format income statement under each of the following conditions.

1. Sales volume increases by 15%.
2. Selling price decreases by $1.5 per unit, and sales volume increases by 25%.
3. Selling price increases by $1.5 per unit, fixed expenses increase by $20,000 and the sales volume decreases by 5%.
4. Selling price increases by 12%, variable expense increases by 60% per unit and sales volume decreases by 10 %.