Preparing a Contribution Format Income Statement. Wheeler Corporation’s most recent income statement follows.
|
Total Per Unit |
||
|
Sales (8,000 units) |
$208,000 |
$26.00 |
|
Variable expenses |
244.000 |
18.00 |
|
Contribution margin |
64.00 |
$8.00 |
|
Fixed expenses |
56.00 |
|
|
Net Operating income |
$8,000 |
|
Required:
Prepare a new Contribution format income statement under each of the following conditions (consider each case independently):
1. The sales volume increases by 50 units
2. The sales volume declines by 50 units.
3. The sales volume is 7,000 units.
