Eb10.
lo 3.3keleher industries manufactures pet doors and sells them directly to the consumer via their web site. the marketing manager believes that if the company invests in new software, they will increase their sales by 10%. the new software will increase fixed costs by $400 per month. prepare a forecasted contribution margin income statement for keleher industries reflecting the new software cost and associated increase in sales. the previous annual statement is as follows:

Forecast contribution margin income statement

                                                                             $

Forecast sales (3,410 units x $250)             852,500

Forecast variable cost (3,410 units x $115)   (392,150)

Forecast contribution margin                        460,350  

Forecast fixed cost                                         (24,300)

Forecast net income                                      436,050                                                                      

Explanation:

In this case, forecast sales volume increases by 10%, which is 110% of original sales volume ie 110% x 3,100 units = 3,410 units. Then, we will multiply the forecast sales volume by selling price in order to obtain the forecast sales revenue.

The forecast variable cost will be calculated based on forecast sales volume, which is forecast sales volume multiplied by variable cost per unit. The variable cost varies according to activity level.    

The forecast fixed cost is the original fixed cost plus an increase of $400 per month ($400 x 12 = $4,800). The forecast fixed cost is $24,300.

Finally, we will prepare contribution margin income statement by deducting forecast variable cost and forecast fixed cost from forecast sales revenue.                                                                                                    

Forecast sales revenue minus forecast variable cost gives forecast contribution margin.

x=3

step-by-step explanation:

this is really simple i saw that there was only one term (5x) and thought if that was 15 what would i have to multiply everything else to get it there? well if 5x became 15 then x would have to be 3 so plug the 3 in the x for the other equations and you get 15 for the other ones. so there you go. : )