EXERCISE 5-17 Using a Contribution Format Income Statement [LO1, L04] Porter Company's most recent contribution format income statement is shown below: 1. 2. 3. Sales (30,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 4. Total $150,000 90,000 60,000 50,000 $10,000 Per Unit $5 Required: Prepare a new contribution format income statement under each of the following conditions (con- sider each case independently): The number of units sold increases by 15%. The selling price decreases by 50 cents per unit, and the number of units sold increases by 20%. ||3|w $2 The selling price increases by 50 cents per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 5%. Variable expenses increase by 20 cents per unit, the selling price increases by 12%, and the number of units sold decreases by 10%.
EXERCISE 5-17 Using a Contribution Format Income Statement [LO1, L04] Porter Company's most recent contribution format income statement is shown below: 1. 2. 3. Sales (30,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 4. Total $150,000 90,000 60,000 50,000 $10,000 Per Unit $5 Required: Prepare a new contribution format income statement under each of the following conditions (con- sider each case independently): The number of units sold increases by 15%. The selling price decreases by 50 cents per unit, and the number of units sold increases by 20%. ||3|w $2 The selling price increases by 50 cents per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 5%. Variable expenses increase by 20 cents per unit, the selling price increases by 12%, and the number of units sold decreases by 10%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![EXERCISE 5-17 Using a Contribution Format Income Statement [L01, L04]
Porter Company's most recent contribution format income statement is shown below:
1.
2.
3.
Sales (30,000 units).
Variable expenses
Contribution margin
4.
Fixed expenses
Net operating income.
Total
$150,000
90,000
60,000
50,000
$ 10,000
Per Unit
$5
Required:
Prepare a new contribution format income statement under each of the following conditions (con-
sider each case independently):
The number of units sold increases by 15%.
The selling price decreases by 50 cents per unit, and the number of units sold increases by
20%.
||
$2
The selling price increases by 50 cents per unit, fixed expenses increase by $10,000, and the
number of units sold decreases by 5%.
Variable expenses increase by 20 cents per unit, the selling price increases by 12%, and the
number of units sold decreases by 10%.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcc7ff735-d054-453c-a800-206db342f167%2F93e1105b-df68-4a79-b2d1-c3cf9162876d%2Fzhysd2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:EXERCISE 5-17 Using a Contribution Format Income Statement [L01, L04]
Porter Company's most recent contribution format income statement is shown below:
1.
2.
3.
Sales (30,000 units).
Variable expenses
Contribution margin
4.
Fixed expenses
Net operating income.
Total
$150,000
90,000
60,000
50,000
$ 10,000
Per Unit
$5
Required:
Prepare a new contribution format income statement under each of the following conditions (con-
sider each case independently):
The number of units sold increases by 15%.
The selling price decreases by 50 cents per unit, and the number of units sold increases by
20%.
||
$2
The selling price increases by 50 cents per unit, fixed expenses increase by $10,000, and the
number of units sold decreases by 5%.
Variable expenses increase by 20 cents per unit, the selling price increases by 12%, and the
number of units sold decreases by 10%.
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