Wheeler Corporation\'s most recent income statement follows: Prepare a new contr

Question

Wheeler Corporation's most recent income statement follows:

Prepare a new contribution format income statement under each of the following conditions (consider each case independently):

The sales volume increases by 50 units. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

The sales volume declines by 50 units. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

$

The sales volume is 7,500 units. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

$

Total Per Unit Sales (8,500 units) $ 228,650 $ 26.90 Variable expenses 152,150 17.90 Contribution margin 76,500 $ 9.00 Fixed expenses 55,300 Net operating income $ 21,200

Explanation / Answer

Current 1 2 3 Units 8500 8550 8450 7500 Sales 228650 229995 227305 201750 Variable 152150 153045 151255 134250 Contribution 76500 76950 76050 67500 Fixed Exp. 55300 55300 55300 55300 Net Income 21200 21650 20750 12200

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