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F. Naz
F. Naz, Chartered Accountant
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This is the original contribution margin income statement.

Resolved Question:

This is the original contribution margin income statement. You will be adjusting this statement for each condition, #1-#4                              
          Per Unit     Total
Sales                    5      $150,000
Variable Costs     3      90,000
Contribution margin2      60,000
Fixed expense           50,000
Net operating income      $10,000           
     No. of units            30,000                
Condition #1--number of units sold increases by 15%                              
Show computations:Per Unit     Total
Sales                    5     $150,000
Variable Costs     3      90,000
Contribution margin2      60,000
Fixed expense           50,000
Net operating income      $10,000           
     No. of units            30,000                
Condition #2--The selling price decreases by 50 cents per unit, and the number o units sold increases by 20%                              
Show computations:Per Unit     Total
Sales     5          $150,000
Variable Costs3 90,000
Contribution margin2      60,000
Fixed expense           50,000
Net operating income      $10,000

Condition #3--The selling price increases by 50 cents per unit, fixed expenses increase by $10,000 and the number of units sold decreases by 5%.                              
Show computations:     
              Per Unit Total
Sales               5    $150,000
Variable Costs      3      90,000
Contribution margin 2     60,000
Fixed expense           50,000
Net operating income     $10,000           
No. of units            30,000

Condition #4--Variable expenses increase by 20 cents per unit, the selling price increases by 12% and the number of units sold decreases by 10%.                              
Show computations:          
             Per Unit          Total
Sales                  5         $150,000
Variable Costs          3          90,000
Contribution margin 2           60,000
Fixed expense               50,000
Net operating income          $10,000           
No. of units                30,000
Submitted: 7 years ago.
Category: Homework
Customer: replied 7 years ago.
hello,
Iam sorry but Iam lost is the answer in the right????
Can you show me the computation because I need them, please
Thanks
Expert:  F. Naz replied 7 years ago.
THIS ANSWER IS LOCKED!

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Customer: replied 7 years ago.
Thanks Smile

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