Question: Sales (15,000 units)... Variable Expense.. Contribution Margin.. Fixed Expenses... Net Operating Income.. Amount $450,000 360,000 90,000 40,000 $50,000 Question Two 1. Refer to original data

Sales (15,000 units)... Variable Expense.. Contribution Margin.. Fixed Expenses... Net Operating Income.. Amount $450,000 360,000 90,000 40,000 $50,000 Question Two 1. Refer to original data (15 marks) a. Consider the following suggested changes for next month and prepare a new CM format Income Statement: Price increased by 10%, Volume increased by 8%, VC per unit increased by $3 and total FC increased by $12,000. a. Would this be a sound suggestion? Explain (1 mark) a. What is the purpose of CVP analysis? (2 marks)

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