Oriole Markets imports and sells small bear-shaped piatas. In planning for the coming year, the company's...

Transcribed Image Text:

Oriole Markets imports and sells small bear-shaped piatas. 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. Consider each scenario is applied independently to the original data. Last year's income statement is as follows: Total Per Unit Sales revenue $1,720,000 $40.00 Variable expenses 860,000 20.00 Contribution margin 860,000 $20.00 Fixed expenses 175,000 Operating income $685,000 Your answer is partially correct. The sales price increases by 10% and sales volume decreases by 6%. (Round per unit answers to 2 decimal places, e.g. 0.38.) Sales Variable expenses Contribution margin Fixed expenses Oriole Markets Income Statement Total Per Unit 1784905.66 -860000 973584.91 $ 10+ -175000 i Operating income $ 798584.91 44 20 i 24 Your answer is partially correct. The sales price decreases by 5% and sales volume increases by 15%. (Round per unit answers to 2 decimal places, e.g. 0.38.) Oriole Markets Income Statement Total Per Unit Sales Variable expenses Contribution margin Fixed expenses $ Operating income $ 1883809 -989000 i 894809 -175000 i 719809 +A $ +A $ 38.10 20 18.10 Your answer is partially correct. 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%. (Round per unit answers to 2 decimal places, e.g. 0.38.) Oriole Markets Income Statement Total Per Unit Sales Variable expenses Contribution margin Fixed expenses +A $ Operating income $ 1675130 860000 815130 205000 i 610130 +A 44.80 23.00 21.80 Oriole Markets imports and sells small bear-shaped piatas. 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. Consider each scenario is applied independently to the original data. Last year's income statement is as follows: Total Per Unit Sales revenue $1,720,000 $40.00 Variable expenses 860,000 20.00 Contribution margin 860,000 $20.00 Fixed expenses 175,000 Operating income $685,000 Your answer is partially correct. The sales price increases by 10% and sales volume decreases by 6%. (Round per unit answers to 2 decimal places, e.g. 0.38.) Sales Variable expenses Contribution margin Fixed expenses Oriole Markets Income Statement Total Per Unit 1784905.66 -860000 973584.91 $ 10+ -175000 i Operating income $ 798584.91 44 20 i 24 Your answer is partially correct. The sales price decreases by 5% and sales volume increases by 15%. (Round per unit answers to 2 decimal places, e.g. 0.38.) Oriole Markets Income Statement Total Per Unit Sales Variable expenses Contribution margin Fixed expenses $ Operating income $ 1883809 -989000 i 894809 -175000 i 719809 +A $ +A $ 38.10 20 18.10 Your answer is partially correct. 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%. (Round per unit answers to 2 decimal places, e.g. 0.38.) Oriole Markets Income Statement Total Per Unit Sales Variable expenses Contribution margin Fixed expenses +A $ Operating income $ 1675130 860000 815130 205000 i 610130 +A 44.80 23.00 21.80

Answer rating: 100% (QA)

To prepare the contribution margin income statement for each scenario we will use the given data fro... View the full answer