White Limited’s most recent income statement is shown below: Total Per Unit Sale
ID: 2492504 • Letter: W
Question
White Limited’s most recent income statement is shown below:
Total Per Unit
Sales (6,800 units) $ 448,800 $ 66
Variable expenses 285,600 42
Contribution margin 163,200 $ 24
Fixed expenses 145,200
Operating income $ 18,000
Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently):
1. The sales volume increases by 390 units.
2) The sales volume declines by 390 units.
3)
The sales volume is 6,050 units.
The sales volume is 6,050 units.
Explanation / Answer
Answer 1.
Answer 2.
Answer 3.
Particular Per Unit Total Sales (7190) 66 474,540 Variable Expenses 42 301,980 Contribution Margin 24 172,560 Fixed Expenses 153,527.65 Operating Income 19,032.35