iller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (32,000 units) $ 160,000 $5.00 Variable expenses 64,000 2.00 Contribution margin 96,000 $ 3.00 Fixed expenses 50,000 Net operating income $ 46,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 12% ? 2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 22% ? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $7,000, 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 40 cents per unit, and the number of units sold decreases by 12% ?
iller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (32,000 units) $ 160,000 $5.00 Variable expenses 64,000 2.00 Contribution margin 96,000 $ 3.00 Fixed expenses 50,000 Net operating income $ 46,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 12% ? 2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 22% ? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $7,000, 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 40 cents per unit, and the number of units sold decreases by 12% ?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![iller Company's contribution format income statement for the most recent month
is shown below: Total Per Unit Sales (32,000 units) $ 160,000 $5.00 Variable expenses
64,000 2.00 Contribution margin 96,000 $ 3.00 Fixed expenses 50,000 Net operating
income $ 46,000 Required: (Consider each case independently): 1. What is the
revised net operating income if unit sales increase by 12% ? 2. What is the revised
net operating income if the selling price decreases by $1.30 per unit and the
number of units sold increases by 22% ? 3. What is the revised net operating
income if the selling price increases by $1.30 per unit, fixed expenses increase by
$7,000, 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 40 cents per unit, and the number of units sold decreases by 12% ?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F086c0d20-6a62-4247-b714-1e978046588f%2Fcb500119-ee0a-4783-8fee-92237dbd3c83%2Fuufjzpb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:iller Company's contribution format income statement for the most recent month
is shown below: Total Per Unit Sales (32,000 units) $ 160,000 $5.00 Variable expenses
64,000 2.00 Contribution margin 96,000 $ 3.00 Fixed expenses 50,000 Net operating
income $ 46,000 Required: (Consider each case independently): 1. What is the
revised net operating income if unit sales increase by 12% ? 2. What is the revised
net operating income if the selling price decreases by $1.30 per unit and the
number of units sold increases by 22% ? 3. What is the revised net operating
income if the selling price increases by $1.30 per unit, fixed expenses increase by
$7,000, 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 40 cents per unit, and the number of units sold decreases by 12% ?
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