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%.

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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