Exercise 2-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO2-1, LO2-4] Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit $ Sales (45,000 units) Variable expenses Contribution margin $ 450,000 315,000 135,000 10.00 7.00 $ 3.00 Fixed expenses 44,000 Net operating income $ 91,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 16%? 2. What is the revised net operating income if the selling price decreases by $1.10 per unit and the number of units sold increases by 16%? 3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 5%?
Exercise 2-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO2-1, LO2-4] Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit $ Sales (45,000 units) Variable expenses Contribution margin $ 450,000 315,000 135,000 10.00 7.00 $ 3.00 Fixed expenses 44,000 Net operating income $ 91,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 16%? 2. What is the revised net operating income if the selling price decreases by $1.10 per unit and the number of units sold increases by 16%? 3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 5%?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 2-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed
Costs [LO2-1, LO2-4]
Miller Company's contribution format income statement for the most recent month is shown below:
Total
Per Unit
Sales (45,000 units)
Variable expenses
$ 450,000
Contribution margin
315,000
135,000
$
10.00
7.00
$ 3.00
Fixed expenses
44,000
Net operating income
$ 91,000
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 16%?
2. What is the revised net operating income if the selling price decreases by $1.10 per unit and the number of units sold increases by
16%?
3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $6,000, and the
number of units sold decreases by 5%?
4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per
unit, and the number of units sold decreases by 14%?
1. Net operating income
2. Net operating income
3. Net operating income
4. Net operating income
$
112,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd7c8e8d6-dbb1-4850-ba95-8a046899bff1%2Ff93bf65d-e64e-42cc-8cdd-1515e6160201%2Fiuvmdpm_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 2-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed
Costs [LO2-1, LO2-4]
Miller Company's contribution format income statement for the most recent month is shown below:
Total
Per Unit
Sales (45,000 units)
Variable expenses
$ 450,000
Contribution margin
315,000
135,000
$
10.00
7.00
$ 3.00
Fixed expenses
44,000
Net operating income
$ 91,000
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 16%?
2. What is the revised net operating income if the selling price decreases by $1.10 per unit and the number of units sold increases by
16%?
3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $6,000, and the
number of units sold decreases by 5%?
4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per
unit, and the number of units sold decreases by 14%?
1. Net operating income
2. Net operating income
3. Net operating income
4. Net operating income
$
112,600
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