snd inc had the following results for 2010 prepare a new income statement for each o 613990

SND, Inc., had the following results for 2010: Prepare a new income statement for each of the following scenarios. Consider each scenario independently.

Total

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Per Unit

Sales

$2,000,000

$20.00

Variable expenses

1,250,000

12.50

Contribution margin

750,000

$ 7.50

Fixed expenses

400,000

Operating income

$ 350,000

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

Required

  1. Sales volume decreases by 10%.
  2. The sales price increases by 5%.
  3. Variable costs per unit increase by $1.50.
  4. The sales price decreases to $18, and an additional 5,000 units are sold.
  5. A new advertising campaign costing $75,000 increases sales volume by 15%.
  6. Variable costs per unit increase by $2.00, the sales price per unit increases by $1.50, sales volume decreases by 2,500 units, and fixed expenses increase by $20,000.
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