EXERCISE 5-13Using a Contribution Format Income Statement [Q LO5-1, Q LO5-4] Miller Company's most recent contribution format income statement is shown below: Total Per Unit Sales (20,000 units) Variable expenses $300,000 180,000 $15.00 9.00 Contribution margin $ 6.00 120,000 70,000 Fixed expenses Net operating income. $ 50,000 Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): 1. The number of units sold increases by 15%. 2. The selling price decreases by $1.50 per unit, and the number of units sold increases by 25%. 3. The selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%.
EXERCISE 5-13Using a Contribution Format Income Statement [Q LO5-1, Q LO5-4] Miller Company's most recent contribution format income statement is shown below: Total Per Unit Sales (20,000 units) Variable expenses $300,000 180,000 $15.00 9.00 Contribution margin $ 6.00 120,000 70,000 Fixed expenses Net operating income. $ 50,000 Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): 1. The number of units sold increases by 15%. 2. The selling price decreases by $1.50 per unit, and the number of units sold increases by 25%. 3. The selling price increases by $1.50 per unit, fixed expenses increase by $20,000, 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 5-13Using a Contribution Format Income Statement [Q LO5-1, Q LO5-4]
Miller Company's most recent contribution format income statement is shown below:
Total
Per Unit
Sales (20,000 units)
Variable expenses
$300,000
180,000
$15.00
9.00
Contribution margin
Fixed expenses
$ 6.00
120,000
70,000
$ 50,000
Net operating Income..
Required:
Prepare a new contribution format income statement under each of the following conditions (consider each case independently):
1. The number of units sold increases by 15%.
2. The selling price decreases by $1.50 per unit, and the number of units sold increases by 25%.
3. The selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by
5%.
4. The selling price increases by 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by
10%.
41°F Mo](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F55ae0517-2d99-4ebe-b3e4-a5c853a4cfd4%2Fc9b22205-cd36-42d1-bc13-dccd79514b0b%2Fla4sqb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:EXERCISE 5-13Using a Contribution Format Income Statement [Q LO5-1, Q LO5-4]
Miller Company's most recent contribution format income statement is shown below:
Total
Per Unit
Sales (20,000 units)
Variable expenses
$300,000
180,000
$15.00
9.00
Contribution margin
Fixed expenses
$ 6.00
120,000
70,000
$ 50,000
Net operating Income..
Required:
Prepare a new contribution format income statement under each of the following conditions (consider each case independently):
1. The number of units sold increases by 15%.
2. The selling price decreases by $1.50 per unit, and the number of units sold increases by 25%.
3. The selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by
5%.
4. The selling price increases by 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by
10%.
41°F Mo
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