Redo Whitney 2023 Business Finance
2023 MANAGERIAL accounting 1 Redo Whitney Company s income statement in the contribution format Show both a Total column and a Per Unit
MANAGERIAL accounting:1. Redo Whitney Company’s income statement in the contribution format. Show both a Total column and a Per Unit column on your statement. Leave enough space to the right of your numbers to enter the solution to both parts of (2) below. 2. The president is considering two proposals prepared by members of his staff: a. For next year, the vice president would like to reduce the unit selling price by 20%. She is certain that this would fill the plant to capacity. b. For next year, the sales manager would like to increase the unit selling price by 20%, increase the sales commission to 9% of sales, and increase advertising by $100,000. Based on marketing studies, he is confident this would increase unit sales by one-third. Prepare two contribution income statements, one showing what profits would be under the vice president’s proposal and one showing what profits would be under the sales manager’s proposal. On each statement, include both Total and Per Unit columns
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