White Limited’s most recent income statement is shown below: Total Per Unit Sale

Question

White Limited’s most recent income statement is shown below:

                                             Total             Per Unit

Sales (6,800 units)          $ 448,800             $ 66

Variable expenses            285,600                42         

Contribution margin           163,200             $ 24

Fixed expenses               145,200

Operating income           $ 18,000

Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently):

1. The sales volume increases by 390 units.

2) The sales volume declines by 390 units.

3)

The sales volume is 6,050 units.

The sales volume is 6,050 units.

Explanation / Answer

Answer 1.

Answer 2.

Answer 3.

Particular Per Unit Total Sales (7190) 66 474,540 Variable Expenses 42 301,980 Contribution Margin 24 172,560 Fixed Expenses 153,527.65 Operating Income 19,032.35

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