EXERCISE $8-1$

Preparing a Contribution Margin Format Income Statement $[$LO$1-$ CC$1,3,4]$

Holyrood Company's most recent income statement follows:

Required:

Prepare a new income statement under each of the following conditions $($consider each case independently$)$:

The sales volume increases by $15\%,$ and the selling price decreases by $$1\mathrm{.}00.$

The selling price decreases by $$4$ per unit, and the sales volume increases by $25\%.$

The selling price increases by $$1$ per unit, fixed expenses increase by $$20,000,$ and the sales volume decreases by $5\%.$

The selling price increases by $5\%,$ variable expenses increase by $$1$ per unit, and the sales volume decreases by $10\%.$