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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. (Click on the Part 1, Part 2 and Part 3 Tabs below.)
Contribution Margin Income Statement
Sales (10,000 units \times $10 per unit) $100,000
Variable costs (10,000 units \times $6 per unit)60,000
Contribution margin (10,000 units \times $4 per unit)40,000
Fixed costs 30,000
Income $10,000
Units sold 10,000
Selling price per unit $10
Variable cost per unit $6
Required:
1. The 10,000 units sold and produced increases to 10,400 units and fixed costs increase by $5,000.
2. Unit selling price decreases by 5% and units sold and produced increase by 8%. Hint: A unit increase has both a sales and costs impact.
3. Fixed costs increase by $20,000, variable costs per unit decrease by $2, and units sold and produced increase by 500.

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