Miller Company's contribution format income statement for the most recent month isshown below:Sales (38,000 units)Variable expensesContribution marginFixed expensesNet operating incomeTotal$ 190,00076,000114,00046,000$ 68,000Required:(Consider each case independently):1. Net operating income2. Net operating income3. Net operating income4. Net operating incomePer Unit$ 5.002.00$ 3.001. What is the revised net operating income if unit sales increase by 14%?2. What is the revised net operating income if the selling price decreases by $1.40 perunit and the number of units sold increases by 21%?3. What is the revised net operating income if the selling price increases by $1.40 per unit,fixed expenses increase by $7,000, and the number of units sold decreases by 2%?4. What is the revised net operating income if the selling price per unit increases by 10%,variable expenses increase by 10 cents per unit, and the number of units sold decreasesby 14%?

The objective of the question is to calculate the revised net operating income under different…

Answered: Miller Company's contribution format…

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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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% ?
Miller Company's contribution format income statement for the most recent month is shown below: Per Unit $ 9.00 6.00 $ 3.00 Sales (41,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): Total $ 369,000 246,000 123,000 42,000 $ 81,000 1. What is the revised net operating income if unit sales increase by 13%? 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 21%? 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 5%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 11%? X Answer is complete but not entirely correct. 1. Net operating income $ 96,990 2. Net operating income $…
Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 35.00 20.00 $15.00 Sales (7,600 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 266,000 152,000 114,000 54,600 $ 59,400 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 1. What would be the revised net operating income per month if the sales volume increases by 60 units? 2. What would be the revised net operating income per month if the sales volume decreases by 60 units? 3. What would be the revised net operating income per month if the sales volume is 6,600 units?
The contribution format income statement for Huerra Company for last year is given below. Total $1,006,000 603,600 Unit $ 50.30 30.18 402,400 20.12 322,400 16.12 Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 40% Net income 80,000 32,000 $ 48,000 4.00 1.60 $2.40 The company had average operating assets of $502,000 during the year. Required: 1. Compute the company's margin, turnover, and return on investment (ROI) for the period. For each of the following questions, indicate whether the margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI figure. Consider each question separately, starting in each case from the data used to compute the original ROI in (1) above. 2. Using Lean Production, the company is able to reduce the average level of inventory by $93,000. 3. The company achieves a cost savings of $7,000 per year by using less costly materials. 4. The company…
Last year’s contribution format income statement for Huerra Company is given below: Total Unit Sales $ 1,002,000 $ 50.10 Variable expenses 601,200 30.06 Contribution margin 400,800 20.04 Fixed expenses 316,800 15.84 Net operating income 84,000 4.20 Income taxes @ 40% 33,600 1.68 Net income $ 50,400 $ 2.52 The company had average operating assets of $491,000 during the year. Required: Compute last year’s margin, turnover, and return on investment (ROI). For each of the following questions, indicate whether last year’s margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI. Consider each question separately. Using Lean Production, the company is able to reduce the average level of inventory by $100,000. The company achieves a cost savings of $10,000 per year by using less costly materials. The company purchases machinery and equipment that increase average operating assets by $125,000.…
Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 33.00 19.00 $ 14.00 Sales (8,500 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 280,500 161,500 119,000 54,700 $ 64,300 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 70 units? 2. What would be the revised net operating income per month if the sales volume decreases by 70 units? 3. What would be the revised net operating income per month if the sales volume is 7,500 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
Required information A company sold a total of 1,000 units for total sales revenue of $70,000. The company incurred total variable expenses of $38,500 and total fixed expenses of $ 23,310. Based on this, the company reported a total contribution margin of $31,500 and net operating income of $ 8,190. Use this information to answer the following questions. Assume that all units are within the relevant range. Calculate the contribution margin ratio. Contribution margin ratio %
CVP Analysis, *What IT?" AnalysisKevin Co. projected contribution-format income statement for the upcoming month is shownBelow Sales (500 units) $10000Variable expenses. 4000Contributions margin. 6000Fixed expenses. 1000Net operating income. 5000Required:a.) Compute the breakeven point in units.b) Compute the breakeven paint in dollars.c.) If the company wishes to earn a monthly target profit of $10,000, how many units must be sold each month?d.) Compute the company's margin of safety. State your answer in both dollar and percentage terms,e.) The company's manager thinks that adding a salaried sales staff member at a cost of 52,000 per month will increase sales by $4,000 per month. If he is correct, what will be the net dollar advantage or disadvantage of making this change?t.) Refer to the original data, the company's manager believes that a new production process will improve profitability. He plans to add new machinery that will cut variable expenses…
Whirly Corporation's contribution format income statement for the most recent month is shown below: Total $ 268,600 150, 100 118,500 54,300 Per Unit $ 34.00 19.00 $ 15.00 $ 64,200 Sales (7,900 units) Variable expenses Contribution margin Fixed expenses Net operating income. Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 30 units? 2. What would be the revised net operating income per month if the sales volume decreases by 30 units? 3. What would be the revised net operating income per month if the sales volume is 6,900 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 32.00 19.00 $13.00 Sales (8,300 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 265,600 157,700 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 8 $ 107,900 55,200 $ 52,700 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units? 3. What would be the revised net operating income per month if the sales volume is 7,300 units?
Miller Company’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (36,000 units) $ 180,000 $ 5.00 Variable expenses 72,000 2.00 Contribution margin 108,000 $ 3.00 Fixed expenses 43,000 Net operating income $ 65,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 17%? 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 24%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 3%? 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 13%?
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,000 units) $ 240,000 $ 30.00 Variable expenses 152,000 19.00 Contribution margin 88,000 $ 11.00 Fixed expenses 55,000 Net operating income $ 33,000 Can you please help me solve for the following: A. What would be the revised net operating income per month if the sales volume increases by 60 units? B. What would be the revised net operating income per month if the sales volume decreases by 60 units? C. What would be the revised net operating income per month if the sales volume is 7,000 units?

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