How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask F. Naz Your Own Question
F. Naz
F. Naz, Chartered Accountant
Category: Homework
Satisfied Customers: 5319
Experience:  Experience with chartered accountancy
Type Your Homework Question Here...
F. Naz is online now
A new question is answered every 9 seconds

Income Statement

This answer was rated:

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%.


You need to spend $3 to view this post. Add Funds to your account and buy credits.
F. Naz and other Homework Specialists are ready to help you
Customer: replied 4 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!

Related Homework Questions