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Porter Company's most recent contribution format income statement is shown below. 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 ||3|w Required: Prepare a new contribution format income statement under each of the following conditions (con- sider each case independently): 1. The number of units sold increases by 15%. 2. $2. The selling price decreases by 50 cents per unit, and the number of units sold increases by 20%. 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 unite cold decreases by 10%

Porter Company's most recent contribution format income statement is shown below. 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 ||3|w Required: Prepare a new contribution format income statement under each of the following conditions (con- sider each case independently): 1. The number of units sold increases by 15%. 2. $2. The selling price decreases by 50 cents per unit, and the number of units sold increases by 20%. 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 unite cold decreases by 10%

FINANCIAL ACCOUNTING
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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Porter Company's most recent contribution format income statement is shown below: 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 3 $2 Required: Prepare a new contribution format income statement under each of the following conditions (con- sider each case independently): 1. The number of units sold increases by 15%. 2. 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%. The selling price decreases by 50 cents per unit, and the number of units sold increases by 20%. Variable expenses increase by 20 cents per unit, the selling price increases by 12%, and the number of units sold decreases by 10%.
Transcribed Image Text:Porter Company's most recent contribution format income statement is shown below: 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 3 $2 Required: Prepare a new contribution format income statement under each of the following conditions (con- sider each case independently): 1. The number of units sold increases by 15%. 2. 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%. The selling price decreases by 50 cents per unit, and the number of units sold increases by 20%. 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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