Blossom Markets imports and sells small bear-shaped piñatas. In planning for the coming year, the company’s owner is evaluating several scenarios. For each scenario under consideration, prepare a contribution margin income statement showing the anticipated operating income. Consider each scenario is applied independently to the original data. Last year’s income statement is as follows: Total Per Unit Sales revenue $682,000 $22.00 Variable expenses 248,000 8.00 Contribution margin 434,000 $14.00 Fixed expenses 175,000 Operating income $259,000
A)The sales price increases by 10% and sales volume decreases by 4%. (Round per unit answers to 2 decimal places, e.g. 0.38.)
I need total sales, variable expenses, contribution margin, fixed expenses, operating income and I need per unit sales, variable expenses, contribution margin
B) The sales price increases by 10% and variable cost per unit increases by 6%.
I need total sales, variable expenses, contribution margin, fixed expenses, operating income and I need per unit sales, variable expenses, contribution margin
C)The sales price decreases by 5% and sales volume increases by 15%. (Round per unit answers to 2 decimal places, e.g. 0.38.)
I need total sales, variable expenses, contribution margin, fixed expenses, operating income and I need per unit sales, variable expenses, contribution margin
D) Fixed expenses increase by $50,000. (Round per unit answers to 2 decimal places, e.g. 0.38.)
E) The sales price increases by 12%, variable cost per unit increases by 15%, fixed expenses increase by $30,000, and sales volume decreases by 15%. (Round per unit answers to 2 decimal places, e.g. 0.38.)
I need total sales, variable expenses, contribution margin, fixed expenses, operating income and I need per unit sales, variable expenses, contribution margin