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F. Naz, Chartered Accountant
Category: Homework
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# Income Statement

### Resolved Question:

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%.

Submitted: 3 years ago.
Category: Homework
Expert:  F. Naz replied 3 years ago.

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F. Naz, Chartered Accountant
Category: Homework
Satisfied Customers: 5144
Experience: Experience with chartered accountancy
Customer: replied 3 years ago.

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?

sales= 172,500

variable expenses= 103,500

CM= 69,000

Fixed expenses=50,000

NOI= 19,000

Thank you again for all your help!

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