Acounting Statement

Exercise 4-1 (20 minutes)

1.The new income statement would be:

| | |Total |Per social unit |
| |Sales (10,100 units) |$353,500 |$35.00 |
| |Variable expenses | 202,000 | 20.00 |
| |Contribution margin |151,500 |$15.00 |
| |Fixed expenses | 135,000 | |
| | straighten out direct(a)(a)(a) income |$ 16,500 | |

You can get the same final operating income using the following approach:

| |Original net operating income |$15,000 |
| |Change in contribution margin |   1,500 |
| |(100 units × $15.00 per unit) | |
| |New net operating income |$16,500 |

2.



The new income statement would be:

| | |Total |Per unit of measurement |
| |Sales (9,900 units) |$346,500 |$35.00 |
| |Variable expenses | 198,000 | 20.00 |
| |Contribution margin |148,500 |$15.00 |
| |Fixed expenses | 135,000 | |
| | brighten operating income |$ 13,500 | |

You can get the same net operating income using the following approach:

| |Original net operating income |$15,000  |
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