Miller Company's contribution format income statement for the most recent month is shown below: Sales (37,000 units) Variable expenses Total $ 259,000 148, 000 Per Unit $ 7.00 4.00 Contribution margin 111,000 $ 3.00 Fixed expenses 45,000 Net operating income $ 66,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 15%? 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 18%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $8,000, 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 10%, variable expenses increase by 40 cents per unit, and the number of units sold decreases by 6%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income $ 81,540 www w 36,548 $ $ 86,081 70,255
Miller Company's contribution format income statement for the most recent month is shown below: Sales (37,000 units) Variable expenses Total $ 259,000 148, 000 Per Unit $ 7.00 4.00 Contribution margin 111,000 $ 3.00 Fixed expenses 45,000 Net operating income $ 66,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 15%? 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 18%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $8,000, 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 10%, variable expenses increase by 40 cents per unit, and the number of units sold decreases by 6%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income $ 81,540 www w 36,548 $ $ 86,081 70,255
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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