1. Aladin Company Manufactures small battery that is used in clocks, toys and some other electronic devices. The last month's income statement of Aladin is given below: Sales (30,000 batteries) Less variable expenses Contribution Margin Fixed expenses Net operating income Total $300,000 $180,000 $120,000 $100,000 $20,000 Per Unit $10 $6 $4 Required: Prepare Aladin's new income statement under each of the following conditions: 1. The sales colume increase by 15%. 2. The selling price decreases by 20% per unit, and the sales volume increase by 30%. 3. The selling price increases by 50% per unit, fixed expenses increase by $20,000 and the sales volume decreases by 5%. 4. Variable expenses increases by 20% per unit, the selling price increase by 12%, and the sales volume decrease by 10%.
1. Aladin Company Manufactures small battery that is used in clocks, toys and some other electronic devices. The last month's income statement of Aladin is given below: Sales (30,000 batteries) Less variable expenses Contribution Margin Fixed expenses Net operating income Total $300,000 $180,000 $120,000 $100,000 $20,000 Per Unit $10 $6 $4 Required: Prepare Aladin's new income statement under each of the following conditions: 1. The sales colume increase by 15%. 2. The selling price decreases by 20% per unit, and the sales volume increase by 30%. 3. The selling price increases by 50% per unit, fixed expenses increase by $20,000 and the sales volume decreases by 5%. 4. Variable expenses increases by 20% per unit, the selling price increase by 12%, and the sales volume decrease by 10%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:1. Aladin Company Manufactures small battery that is used in
clocks, toys and some other electronic devices. The last
month's income statement of Aladin is given below:
Sales (30,000 batteries)
Less variable expenses
Contribution Margin
Fixed expenses
Net operating income
Total
$300,000
$180,000
$120,000
$100,000
$20,000
Per Unit
$10
$6
$4
Required:
Prepare Aladin's new income statement under each of the following conditions:
1. The sales colume increase by 15%.
2. The selling price decreases by 20% per unit, and the sales volume increase by 30%.
3. The selling price increases by 50% per unit, fixed expenses increase by $20,000 and the sales
volume decreases by 5%.
4. Variable expenses increases by 20% per unit, the selling price increase by 12%, and the sales
volume decrease by 10%.
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