Kelly Companys most recent contribution format income statement is shown below: ...

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Accounting

Kelly Companys most recent contribution format income statement is shown below:

Total

Per Unit

Sales (50,000 units)

$

700,000

$

14

Variable costs

300,000

6

Contribution margin

400,000

$

8

Fixed costs

240,000

Operating income

$

160,000

Required:

Prepare a new contribution format income statement with a per unit column under each of the following conditions (consider each case independently):

  1. The selling price increases by $1 per unit, fixed costs increase by $20,000, and the number of units sold decreases by 10%. Would this change be beneficial to the company? Briefly explain. ( 4 marks)
  1. Return to the original data. Variable costs increase by 60 cents per unit, the selling price increases by 15%, and the number of units sold decreases by 15%. Would this change be beneficial to the company? Briefly explain. ( 4 marks)

  1. Return to the original data. The selling price decreases by $2 per unit, fixed costs decrease by $30,000, and the variable costs per unit increases by 10%. Would this change be beneficial to the company? Briefly explain. ( 4 marks)

  1. Return to the original data. The number of units sold decreases by 5%, fixed costs increase by 10%, and the variable costs per unit decreases by $4 per unit. Would this change be beneficial to the company? Briefly explain. ( 4 marks)

i need this answer as soon as possible please

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