Wheeler Corporation’s most recent income statement follows.

Wheeler Corporation’s most recent income statement follows.

                                     Total                       Per Unit

Sales (8,000 units)    $208,000                $26.00

Variable expenses      144,000                  18.00

Contribution margin        64,000                  $8.00

Fixed expenses                56,000 

Net Operating income       $8,000 

Required:

Prepare a new Contribution format income statement under each of the following conditions (consider each case independently):

1.  The sales volume increases by 50 units

2.  The sales volume declines by 50 units.

3.  The sales volume is 7,000 units.