Aladin Company manufactures small batteries to be used in clocks, toys and some other electronic devices. The last month’s income statement of Aladin is given below:
Prepare Aladin’s new income statement under each of the following conditions:
- The sales volume increases by 15%.
- The selling price decreases by 20% per unit, and the sales volume increases by 30%.
- The selling price increases by 50% per unit, fixed expenses increase by $20,000 and the sales volume decreases by 5%.
- Variable expenses increase by 20% per unit, the selling price increases by 12%, and the sales volume decreases by 10%.