1. Aladin Company Manufactures small battery that is used inclocks, toys and some other electronic devices. The lastmonth's income statement of Aladin is given below:Sales (30,000 batteries)Less variable expensesContribution MarginFixed expensesNet operating incomeTotal$300,000$180,000$120,000$100,000$20,000Per Unit$10$6$4Required:Prepare Aladin's new income statement under each of the following conditions:1. The sales colume increase by 15%.2. The selling price decreases by 20% per unit, and the sales volume increase by 30%.3. The selling price increases by 50% per unit, fixed expenses increase by $20,000 and the salesvolume decreases by 5%.4. Variable expenses increases by 20% per unit, the selling price increase by 12%, and the salesvolume decrease by 10%.

The following calculations are done as per the given information.

Answered: 1. Aladin Company Manufactures small…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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