Question

ACC 212-MANAGERIAL ACCOUNTING -SECTION 1 H-9 Fisher Company's most recent income statement is shown below: Sales (30,000 units) Less: Variable expenses Contribution margin Less Fixed Expenses Net Income TOTAL PER UNIT 150,000 90,000 60,000 5 50,000 10,000 REQUIRED: Calculate the impact on net income of each of the following conditions (consider each case independently) using the incremental contribution marain approach. (1) The sales volume increases by 15%. (2) The selling price decreases by 50 cents per unit, and the sales volume increases by 20%. $10,000, and the sales volume decreases by 5%. and the sales volume decreases by 10%. (3) The selling price increases by 50 cents per unit, fixed expenses increase by (4) Variable expenses increase by 20 cents per unit, the selling price increases by 12%,

Answer 1

Given Information

Sales	$                 1,50,000
variable expenses	$                     90,000
contribution margin	$                     60,000
fixed expenses	$                     50,000
Net Income	$                     10,000