Sales (30,000 batteries) |
$300,000 |
$10 |
Less variable expenses |
$180,000 |
$6 |
---- |
-- |
Contribution margin |
$120,000 |
$4 |
Fixed expenses |
$100,000 |
-- |
---- |
Net operating income |
$20,000 |
---- |
Required:
Prepare Aladin's new income statement under each of the following conditions:
- The sales volume increases by 15%.
- The selling price decreases by 20% per unit, and the sales volume increases by 30%.
- The selling price increases by 50% per unit, fixed expenses increase by $20,000 and the sales volume decreases by 5%.
- Variable expenses increase by 20% per unit, the selling price increases by 12%, and the sales volume decreases by 10%.