Miller Company's contribution format income statement for the most recent month is shown below: Per Unit $ 8.00 5.00 $ 3.00 Sales (34,000 units) Variable expenses Contribution margin Fixed expenses Net operating income. Required: (Consider each case independently): Total $ 272,000 170,000 102,000 43,000 $ 59,000. 1. What is the revised net operating income if unit sales increase by 19%? 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 16%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 6%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 11%? Answer is complete but not entirely correct. $ $ $ 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income. 78,380✔ 27,992 81,032 x 62,910

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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Miller Company's contribution format income statement for the most recent month is shown below:
Per Unit
$
8.00
5.00
$ 3.00
Sales (34,000 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income.
Required:
(Consider each case independently):
Total
$ 272,000
170,000
102,000
43,000
$ 59,000.
1. What is the revised net operating income if unit sales increase by 19%?
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
16%?
3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $10,000, and
the number of units sold decreases by 6%?
4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents per
unit, and the number of units sold decreases by 11%?
Answer is complete but not entirely correct.
$
$
$
1. Net operating income
2. Net operating income
3. Net operating income
4. Net operating income.
78,380✔
27,992
81,032 x
62,910
Transcribed Image Text:Miller Company's contribution format income statement for the most recent month is shown below: Per Unit $ 8.00 5.00 $ 3.00 Sales (34,000 units) Variable expenses Contribution margin Fixed expenses Net operating income. Required: (Consider each case independently): Total $ 272,000 170,000 102,000 43,000 $ 59,000. 1. What is the revised net operating income if unit sales increase by 19%? 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 16%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 6%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 11%? Answer is complete but not entirely correct. $ $ $ 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income. 78,380✔ 27,992 81,032 x 62,910
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