Please answer 3&4. Please refer to the first photo given to answer. Thank you! Coller Company's most recent contribution format income statement isshown below.TotalPer UnitSales (20,000 units)Less: Variable expensesContribution marginLess: Fixed expensesNet operating incomeP300,000P15.009.00180,000P120,000P 6.0070,000P 50.000Required:Prepare a new contribution format income statement under each of thefollowing conditions (consider each case independently):1. The sales volume increases by 15%.2 The selling price decreases by P1.50 per unit, and the sales volumeincreases by 25%.201 P20,000, and the sales volume decreases by 5%.4. The selling price increases by 12%, variable expenses increase by Posoper unit, and the sales volume decreases by 10%.202

Contribution Margin Income Statement if Selling Price Increase by P 1.50 per unit, Fixed Expenses…

Coller Company's most recent contribution format income shown below. Total Per Unit Sales (20,000 units) Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income P300,000 180,000 P15.00 9 00 P 6.00 P120,000 70,000 P 50,000

Coller Company's most recent contribution format income shown below. Total Per Unit Sales (20,000 units) Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income P300,000 180,000 P15.00 9 00 P 6.00 P120,000 70,000 P 50,000

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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Question

Please answer 3&4. Please refer to the first photo given to answer. Thank you!

Coller Company's most recent contribution format income statement is
shown below.
Total
Per Unit
Sales (20,000 units)
Less: Variable expenses
Contribution margin
Less: Fixed expenses
Net operating income
P300,000
P15.00
9.00
180,000
P120,000
P 6.00
70,000
P 50.000
Required:
Prepare a new contribution format income statement under each of the
following conditions (consider each case independently):
1. The sales volume increases by 15%.
2 The selling price decreases by P1.50 per unit, and the sales volume
increases by 25%.
201

P20,000, and the sales volume decreases by 5%.
4. The selling price increases by 12%, variable expenses increase by Poso
per unit, and the sales volume decreases by 10%.
202

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