Answer Happy

QUESTION 2 10 Marks
Stellas Company most recent contribution format Statement of
Comprehensive Income is shown below:
Total Per Unit R R Sales (20 000 units) 300 000 15.00
Variable expenses 180 000 9.00
Contribution margin 120 000 6.00
Fixed expenses 70 000
Net operating income 50 000
Required: Prepare a new contribution format Statement of
Comprehensive Income (income Statement) under each of the following
conditions (consider each case independently):
2.1 The number of units sold increases by 15%. (2)
2.2 The selling price decreases by R1.50 per unit,
and the number of units sold increases by 25%. (2)
2.3 The selling price increases by R1.50 per unit, fixed
expenses increase by R20,000, and the number of units sold
decreases by 5%. (3)
2.4 The selling price increases by 12%, variable expenses
increase by 60 cents per unit, and the number of units sold
decreases by 10%. (3)