Question: The Wings Corporation's most recent contribution format income statement is shown below: Total Per unit Sales (10,000 units)....................... $600,000 $60 Variable expenses.......................... 380,000 38 Contribution

The Wings Corporation's most recent contribution format income statement is shown below:

Total

Per unit

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

$600,000

$60

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

380,000

38

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

220,000

$ 22

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

195,000

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

$ 25,000

Required:

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

The sales volume increases by 10% and the price decreases by $2.00 per unit.

The selling price increases by $5.00 per unit, fixed expenses increase by $35,000, and the sales volume decreases by 10%.

The selling price increases by 30%, variable expense increases by $4.00 per unit, and the sales volume decreases by 20%.

The selling price increases by $4.50 per unit, variable cost increases by $6.00 per unit, fixed expenses decrease by $55,000, and sales volume increases by 10%.

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