Miller Company's contribution format income statement for the most recent month is shown below: Per Unit $6.00 3.60 $2.40 Sales (28,200 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 169,200 101,520 67,680 39,480 $ 28,200 Required: (Consider each of the four requirements independently): www 1. Assume the sales volume increases by 4,794 units: a. What is the revised net operating income? b. What is the percent increase in unit sales? c. Using the most recent month's degree of operating leverage, what is the percent increase in net operating income? 2. What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of units sold increases by 20%? 3. What is the revised net operating income f the selling price increases by $1.40 per unit, fixed expenses increase by $5,000, and the number of units sold decreases by 7%? 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 7%?
Miller Company's contribution format income statement for the most recent month is shown below: Per Unit $6.00 3.60 $2.40 Sales (28,200 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 169,200 101,520 67,680 39,480 $ 28,200 Required: (Consider each of the four requirements independently): www 1. Assume the sales volume increases by 4,794 units: a. What is the revised net operating income? b. What is the percent increase in unit sales? c. Using the most recent month's degree of operating leverage, what is the percent increase in net operating income? 2. What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of units sold increases by 20%? 3. What is the revised net operating income f the selling price increases by $1.40 per unit, fixed expenses increase by $5,000, and the number of units sold decreases by 7%? 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 7%?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
I need answer for all with explanation computation for each steps clearly and completely in text form remember answer all or skip provide correct answer
![Miller Company's contribution format income statement for the most recent month is shown below:
Per Unit
$6.00
3.60
$2.40
Sales (28,200 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 169,200
101,520
67,680
39,480
$ 28,200
Required:
(Consider each of the four requirements independently):
www
1. Assume the sales volume increases by 4,794 units:
a. What is the revised net operating income?
b. What is the percent increase in unit sales?
c. Using the most recent month's degree of operating leverage, what is the percent increase in net operating income?
2. What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of units sold
increases by 20%?
3. What is the revised net operating income f the selling price increases by $1.40 per unit, fixed expenses increase by $5,000,
and the number of units sold decreases by 7%?
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 7%?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F37cfedc6-f10c-4e3c-8c7c-ef794fe8b0a4%2F91447eab-5b33-49f7-accb-4e2217909316%2Fjz3ir3f_processed.png&w=3840&q=75)
Transcribed Image Text:Miller Company's contribution format income statement for the most recent month is shown below:
Per Unit
$6.00
3.60
$2.40
Sales (28,200 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 169,200
101,520
67,680
39,480
$ 28,200
Required:
(Consider each of the four requirements independently):
www
1. Assume the sales volume increases by 4,794 units:
a. What is the revised net operating income?
b. What is the percent increase in unit sales?
c. Using the most recent month's degree of operating leverage, what is the percent increase in net operating income?
2. What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of units sold
increases by 20%?
3. What is the revised net operating income f the selling price increases by $1.40 per unit, fixed expenses increase by $5,000,
and the number of units sold decreases by 7%?
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 7%?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education