Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Using a Contribution Format Income Statement Porter Company’s most recent contribution fo...

Using a Contribution Format Income Statement Porter Company’s most recent contribution format income statement is shown below Sales 30000 units

Using a Contribution Format Income Statement

Porter Company’s most recent contribution format income statement is shown below:

 

 

 

Sales (30,000 units) . . . . . . . . . . . .

$150,000

 

$5

Variable expenses . . . . . . . . . . . . .

90,000

 

3

Contribution margin . . . . . . . . . . . .

60,000

 

$2

Fixed expenses  . . . . . . . . . . . . . . .

50,000

 

 

Net operating income . . . . . . . . . . .

$ 10,000

 

 

 

 

Required:

Prepare a new contribution format income statement under each of the following conditions (con- sider each case independently):

1.       The number of units sold increases by 15%.

2.       The selling price decreases by 50 cents per unit, and the number of units sold increases by 20%.

3.       The selling price increases by 50 cents per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 5%.

4.       Variable expenses increase by 20 cents per unit, the selling price increases by 12%, and the number of units sold decreases by 10%.

Jun 28 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions