1. Pantok Manufacturing, most recent income statement follows: Total P208,000 144,000 Sales (8,000 units) Variable expenses.... Contribution margin. Fixed expenses... Net operating Income...... ******* www 64,000 ..56,000 ..... ‒‒‒‒‒‒‒ ..P 8,000 Per unit P 26.00 18.00 P 8.00 ======= Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): a. The sales volume increases by 50 units. b. The sales volume declines by 50 units. c. The sales volume is 7,000 units.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1. Pantok Manufacturing, most recent income statement follows:
Total
P208,000
144,000
Sales (8,000 units)
Variable expenses....
Contribution margin..
Fixed expenses.......
Net operating Income.....
Per unit
P 26.00
18.00
64,000 P 8.00
.56,000
..P 8,000
Required:
Prepare a new contribution format income statement under each of the following
conditions (consider each case independently):
a. The sales volume increases by 50 units.
b. The sales volume declines by 50 units.
c. The sales volume is 7,000 units.
Transcribed Image Text:1. Pantok Manufacturing, most recent income statement follows: Total P208,000 144,000 Sales (8,000 units) Variable expenses.... Contribution margin.. Fixed expenses....... Net operating Income..... Per unit P 26.00 18.00 64,000 P 8.00 .56,000 ..P 8,000 Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): a. The sales volume increases by 50 units. b. The sales volume declines by 50 units. c. The sales volume is 7,000 units.
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