3A manufacturer's contribution margin income statement for the year follows. Prepare contribution margin income statements for eachof the three separate cases below.Contribution Margin Income StatementSales (10,000 units x $10 per unit)Variable costs (10,000 units x $6 per unit)Contribution margin (10,000 units x $4 per unit)Fixed costsIncome$ 100,00060,00040,00030,000$ 10,000Required:1. The 10,000 units sold and produced increases to 10,400 units and fixed costs increase by $5,000.2. Unit selling price decreases by 5% and units sold and produced increase by 8%. Hint: A unit increase has both a sales and costsimpact.3. Fixed costs increase by $20,000, variable costs per unit decrease by $2, and units sold and produced increase by 500.

Contribution Margin Income Statement:A contribution income statement simply refers to an income…

A manufacturer's contribution margin income statement for the year follows. Prepare contribution margin income statements for each of the three separate cases below. Contribution Margin Income Statement Sales (10,000 units x $10 per unit) Variable costs (10,000 units x $6 per unit) Contribution margin (10,000 units x $4 per unit) Fixed costs Income Required: $ 100,000 60,000 40,000 30,000 $ 10,000 1. The 10,000 units sold and produced increases to 10,400 units and fixed costs increase by $5,000. 2. Unit selling price decreases by 5% and units sold and produced increase by 8%. Hint: A unit increase has both a sales and costs impact. 3. Fixed costs increase by $20,000, variable costs per unit decrease by $2, and units sold and produced increase by 500.

A manufacturer's contribution margin income statement for the year follows. Prepare contribution margin income statements for each of the three separate cases below. Contribution Margin Income Statement Sales (10,000 units x $10 per unit) Variable costs (10,000 units x $6 per unit) Contribution margin (10,000 units x $4 per unit) Fixed costs Income Required: $ 100,000 60,000 40,000 30,000 $ 10,000 1. The 10,000 units sold and produced increases to 10,400 units and fixed costs increase by $5,000. 2. Unit selling price decreases by 5% and units sold and produced increase by 8%. Hint: A unit increase has both a sales and costs impact. 3. Fixed costs increase by $20,000, variable costs per unit decrease by $2, and units sold and produced increase by 500.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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