Question: ABC Companys most recent contribution format income statement is shown below: Sales (20,000 units) $ Total Per Unit 300,000 $15 Less variable expenses 180,000 9
ABC Companys most recent contribution format income statement is shown below: Sales (20,000 units) $
Total Per Unit 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. (a) Sales volume increases by 15%. (b) Selling price decreases by $1.5 per unit, and sales volume increases by 25%. (c) Selling price increases by $1.5 per unit, fixed expenses increases by $20,000 and the sales volume decreases by 5%. (d) Selling price increases by 12%, variable expense increases by 60% per unit and sales volume decreases by 10 %.
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