A manufacturers contribution margin income statement for the year follows. Prepare contribution margin income statements...
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Accounting
A manufacturers contribution margin income statement for the year follows. Prepare contribution margin income statements for each of the three separate cases below.
| Contribution Margin Income Statement | |
|---|---|
| Sales (11,500 units $12 per unit) | $ 138,000 |
| Variable costs (11,500 units $7 per unit) | 80,500 |
| Contribution margin (11,500 units $5 per unit) | 57,500 |
| Fixed costs | 48,000 |
| Income | $ 9,500 |
- The 11,500 units sold and produced increases to 12,000 units and fixed costs increase by $6,100.
- Unit selling price decreases by 5% and units sold and produced increase by 6%. Hint: A unit increase has both a sales and costs impact.
- Fixed costs increase by $21,100, variable costs per unit decrease by $2, and units sold and produced increase by 600.
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