Question: The Monkey Bar Corps most recent contribution format income statement is shown below: SHOW YOUR WORK! Total Per unit Sales (10,000 units)....................... $500,000 $50 Variable

The Monkey Bar Corps most recent contribution format income statement is shown below:

SHOW YOUR WORK!

Total

Per unit

Sales (10,000 units).......................

$500,000

$50

Variable expenses..........................

330,000

33

Contribution margin......................

170,000

$ 17

Fixed expenses..............................

95,000

Net operating income....................

$ 75,000

Required:

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

  1. The sales volume increases by 15% and the price decreases by $2.00 per unit.

  1. The selling price increases by $3.00 per unit, fixed expenses increase by $20,000, and the sales volume decreases by 10%.

  1. The selling price increases by 30%, variable expense increases by $4.00 per unit, and the sales volume decreases by 15%.

  1. The selling price increases by $3.50 per unit, variable cost increases by $4.00 per unit, fixed expenses decrease by $35,000, and sales volume increases by 5%.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

\f