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

	Total	Per Unit
Sales (32,000 units)	$192,000	$6.00
Variable expenses	128,000	4.00
Contribution margin	64,000	$2.00
Fixed expenses	45,000
Net operating income	$ 19,000

Required:

Prepare a new contribution format income statement under each of the following conditions (consider each case independently): (Input all amounts as positive values except losses which should be indicated by a minus sign. Do not round intermediate calculations. Round your "Per unit" answers to 2 decimal places.)

1.	The number of units sold increases by 12%.

Contribution Income Statement
	Total	Per Unit
(Click to select)Net operating income (loss)Variable expensesSalesFixed expensesContribution margin	$	$
(Click to select)SalesFixed expensesVariable expensesContribution marginNet operating income (loss)
(Click to select)Net operating income (loss)SalesContribution marginFixed expensesVariable expenses		$
(Click to select)Contribution marginFixed expensesVariable expensesSalesNet operating income (loss)
(Click to select)SalesContribution marginVariable expensesNet operating income (loss)Fixed expenses	$

2.	The selling price decreases by 60 cents per unit, and the number of units sold increases by 17%.

Contribution Income Statement
	Total	Per Unit
(Click to select)Contribution marginSalesNet operating income (loss)Fixed expensesVariable expenses	$	$
(Click to select)Fixed expensesNet operating income (loss)Variable expensesContribution marginSales
(Click to select)Variable expensesContribution marginSalesFixed expensesNet operating income (loss)		$
(Click to select)SalesContribution marginVariable expensesNet operating income (loss)Fixed expenses
(Click to select)SalesContribution marginNet operating income (loss)Variable expensesFixed expenses	$

3.	The selling price increases by 70 cents per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 7%.

Contribution Income Statement
	Total	Per Unit
(Click to select)Variable expensesSalesFixed expensesNet operating income (loss)Contribution margin	$	$
(Click to select)SalesVariable expensesNet operating income (loss)Contribution marginFixed expenses
(Click to select)Contribution marginVariable expensesSalesFixed expensesNet operating income (loss)		$
(Click to select)Net operating income (loss)SalesContribution marginFixed expensesVariable expenses
(Click to select)Net operating income (loss)Contribution marginSalesFixed expensesVariable expenses	$

4.	Variable expenses increase by 10 cents per unit, the selling price increases by 20%, and the number of units sold decreases by 9%.

Contribution Income Statement
	Total	Per Unit
(Click to select)SalesVariable expensesContribution marginFixed expensesNet operating income (loss)	$	$
(Click to select)Net operating income (loss)Contribution marginVariable expensesFixed expensesSales
(Click to select)Net operating income (loss)SalesFixed expensesVariable expensesContribution margin		$
(Click to select)Variable expensesContribution marginSalesFixed expensesNet operating income (loss)
(Click to select)SalesVariable expensesNet operating income (loss)Contribution marginFixed expenses	$

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