Oriole Markets imports and sells small bear-shaped piñatas. In planning for the coming year, the company’s owner is evaluating several scenarios. For each scenario under consideration, prepare a contribution margin income statement showing the anticipated operating income. Consider each scenario is applied independently to the original data. Last year’s income statement is as follows:
Total Per Unit
Sales revenue $ 22.00
$968,000
Variable expenses $ 10.00
440,000
Contribution margin $ 12.00
528,000
Fixed expenses
175,000
Operating income
$353,000
(a)
The sales price increases by 10% and sales volume decreases by 6%. (Round per unit answers to 2 decimal places, e.g. 0.38.)
Oriole Markets
Income Statement
Total Per Unit
Sales
$enter a dollar amount
$enter a dollar amount rounded to 2 decimal places
Variable expenses
enter a dollar amount
enter a dollar amount rounded to 2 decimal places
Contribution margin
enter a total dollar amount
$enter a total dollar amount rounded to 2 decimal places
Fixed expenses
enter a dollar amount
Operating income
$enter a total dollar amount
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