MacNeil Company's most recent contribution format income statement is show below: Sales (40,000 units) Variable Expenses Contribution Margin Fixed Expenses Operating Income Total $800,000 $520,000 $280,000 $120,000 $160,000 Per Unit $20 $13 $7 Prepare a new contribution format income statement under each of the following conditions (consider each case independently): 1. The number of units sold increase by 25%. 2. The selling price decreases by $2 per unit and the number of units sold increase by 30% 3. The selling price increases by $2 per unit and the fixed expenses increase by $35,000 and the number of units sold decrease by 15%. 4. Variable expenses increase by 75 cents per unit, the selling price increases by 20% and the number of units sold decreases by 5%.
MacNeil Company's most recent contribution format income statement is show below: Sales (40,000 units) Variable Expenses Contribution Margin Fixed Expenses Operating Income Total $800,000 $520,000 $280,000 $120,000 $160,000 Per Unit $20 $13 $7 Prepare a new contribution format income statement under each of the following conditions (consider each case independently): 1. The number of units sold increase by 25%. 2. The selling price decreases by $2 per unit and the number of units sold increase by 30% 3. The selling price increases by $2 per unit and the fixed expenses increase by $35,000 and the number of units sold decrease by 15%. 4. Variable expenses increase by 75 cents per unit, the selling price increases by 20% and the number of units sold decreases by 5%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
do fast i need 1,2,3,4 answer
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 6 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education