A manufacturer’s contribution margin income statement for the year follows. Prepare contribution margin income statements for each of the two separate cases below.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.Fixed costs increase by $20,000, variable costs per unit decrease by $2, and units sold and produced increase by 500Use the table below to figure out the Sales, Variable Cost, Contribution Margin, Fixed Cost, and Income (loss) of each question. 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$ 10,000

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Answered: A manufacturer’s contribution margin…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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A manufacturer’s contribution margin income statement for the year follows. Prepare contribution margin income statements for each of the two separate cases below.

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.
Fixed costs increase by $20,000, variable costs per unit decrease by $2, and units sold and produced increase by 500

Use the table below to figure out the Sales, Variable Cost, Contribution Margin, Fixed Cost, and Income (loss) of each question.