Exercise 5-13 (Algo) 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: Total Per Unit $5.00 $ 160,000 64,000 2.00 $ 3.00 Sales (32,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 96,000 42,000 $ 54,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 14%? 2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 24%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 4%? 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 9%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income
Exercise 5-13 (Algo) 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: Total Per Unit $5.00 $ 160,000 64,000 2.00 $ 3.00 Sales (32,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 96,000 42,000 $ 54,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 14%? 2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 24%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 4%? 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 9%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Exercise 5-13 (Algo) 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:
Per Unit
$ 5.00
2.00
$ 3.00
Sales (32,000 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 160,000
64,000
96,000
42,000
$ 54,000
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 14%?
2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units
sold increases by 24%?
1. Net operating income
2. Net operating income
3. Net operating income
4. Net operating income
3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase
by $9,000, and the number of units sold decreases by 4%?
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 9%?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6c34c223-df34-4393-99f7-e96e63759518%2F87a1dae8-cd99-4f5f-b801-4c858e97930f%2Fksgs19b_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 5-13 (Algo) 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:
Per Unit
$ 5.00
2.00
$ 3.00
Sales (32,000 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 160,000
64,000
96,000
42,000
$ 54,000
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 14%?
2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units
sold increases by 24%?
1. Net operating income
2. Net operating income
3. Net operating income
4. Net operating income
3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase
by $9,000, and the number of units sold decreases by 4%?
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 9%?
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