Using a Contribution Format Statement Porter Company's most recent contribution format income statement is shown below.
Total Per Unit
Sales (30,000 units) = $150,000 $5
Variable expenses = 90,000 3
Contribution Margin = 60,000 $2
Fixed expenses = 50,000
Net Operating income.=$10,000
Question- Prepare a new contribution statement under each of the following conditions. Consider each case independently.
1. The number of units sold increases by 10%
2. The selling price decreases by 50 cents per unit, and the number of units sold increase by 20%
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%.
4. Variable expenses increase by 20 cents per unit, the selling price increases by 12%, and the number of units sold decreases by 10%.
Hi Thank you so much for your time! I truly appreciate it. I however realized I made a mistake in wording the very first question. Instead of 10%, it was 15% in this case would the numbers look something like this?
variable expenses= 103,500
Thank you again for all your help!
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