Costs Miller Company's contribution format income statement for the most recent month is shown below: Sales (20,000 units) Variable expenses. Contribution margin Fixed expenses. Net operating income... Required: (Consider each case independently): 3. Total $300,000 180,000 Per Unit $15.00 9.00 120,000 $6.00 70,000 $ 50,000 1. What is the revised net operating income if unit sales increase by 15%? 2. What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 25%? What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%? income if the selling price per unit increases by 12%,
Costs Miller Company's contribution format income statement for the most recent month is shown below: Sales (20,000 units) Variable expenses. Contribution margin Fixed expenses. Net operating income... Required: (Consider each case independently): 3. Total $300,000 180,000 Per Unit $15.00 9.00 120,000 $6.00 70,000 $ 50,000 1. What is the revised net operating income if unit sales increase by 15%? 2. What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 25%? What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%? income if the selling price per unit increases by 12%,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Hh1.
Account
Transcribed Image Text:EXERCISE 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed
Costs LO5-1, LO5-4
Miller Company's contribution format income statement for the most recent month is shown
below:
3.
Sales (20,000 units).
Variable expenses.
Contribution margin
4.
Fixed expenses.....
Net operating income..
Total
$300,000
180,000
120,000
70,000
$ 50,000
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 15%?
2.
What is the revised net operating income if the selling price decreases by $1.50 per unit and
the number of units sold increases by 25%?
Per Unit
$15.00
9.00
$ 6.00
What is the revised net operating income if the selling price increases by $1.50 per unit, fixed
expenses increase by $20,000, and the number of units sold decreases by 5%?
What is the revised net operating income if the selling price per unit increases by 12%,
variable expenses increase by 60 cents per unit, and the number of units sold decreases
by 10%?
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