Question & Answer: e a new income statement for each of the following scenarios. Consider each scenario independently……

Prepare a new income statement for each of the following scenarios. Consider each scenario independently.

1. Sales volume increases by 10%. (Round per unit answers to 2 decimal places, e.g. 0.38.)

2. The sales price decreases by 5%. (Round per unit answers to 2 decimal places, e.g. 0.38.)

3.Variable costs per unit decrease by $1.64. (Round per unit answers to 2 decimal places, e.g. 0.38.)

4. The sales price decreases to $48.00, and an additional 6,600 units are sold. (Round per unit answers to 2 decimal places, e.g. 0.38.)

5. A new advertising campaign costing $82,600 increases sales volume by 10%. (Round per unit answers to 2 decimal places, e.g. 0.38.)
6. Variable costs per unit increase by $3.00, the sales price per unit increases by $3.00, sales volume decreases by 3,100 units, and fixed expenses increase by $20,000. (Round per unit answers to 2 decimal places, e.g. 0.38.)

Cullumber, Inc.
Income Statement

Total

Per Unit

Sales$

$

Variable expenses

Contribution margin

$

Fixed expenses

Operating income$