Question

The entire question is in the Business Environment (11th Edition), chapter 14, Problem 63C. It is a very lengthy question for me to type out. it's here

Loose-Leaf for Managerial Accounting: Creating Value in a Dynamic Business Environment (11th Edition) , chapter 14, problem 63C. specifically question #2.

, The last three lines I need help understanding how to get the numbers for the additional contribution due to change and then get the increase (decrease) in fixed cost and profit or loss

Chapter 14, Problem 63C

	Q	E	R
sales unit	8000	10000	5000
sales revenue	200	90	180
less variable cost
material	31	17	50
labor	40	20	60
overhead	45	30	60
shipping expense	10	4	10
contribution	74	19
change in unit sales	1200	-5000	-5000
additional contribution due to change	88800	-95000
(increase) decrease in fixed cost	80000	-100000	40000
profit or loss	-15000	-11200	40000

Answer 1

	Q	E	R
Sales units	8000	10000	5000
Sales revenue	200	90	180
Less: variable cost material	31	17	50
Less: labor	40	20	60
Less: Overhead	45	30	60
Less: shipping expense	10	4	10
Contribution	74	19	0
Contribution on actual units	592000	190000	0
	=8000*74	=10000*19	=5000*0
Changes in unit sales	1200	-5000	-5000
Contribution on addition units	88800	-95000	0
	=1200*74	=-5000*19	=-5000*0
Total contribution	680800	95000	0
Fixed Costs
Original fixed costs
Change in fixed costs	80000	-100000	40000
Total fixed costs	=original fixed costs-80000	=original fixed costs+100000	=original fixed costs-40000
Profit or loss	-15000	-11200	40000
Total fixed costs=total contribution-Profit (loss)	695800	106200	-40000
	=680800-(-15000)	=95000-(-11200)	=0-40000
original fixed costs	775800	6200	0