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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%,

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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%?
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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