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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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