Miller Company's contribution format income statement for the most recent month is shown below: Sales (39,000 units) Total $ 312,000 Per Unit $ 8.00 Variable expenses Contribution margin Fixed expenses Net operating income. Required: 195,000 117,000 5.00 $ 3.00 48,000 $ 69,000 (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 16%? 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 19%? 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 5%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 11%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income
Miller Company's contribution format income statement for the most recent month is shown below: Sales (39,000 units) Total $ 312,000 Per Unit $ 8.00 Variable expenses Contribution margin Fixed expenses Net operating income. Required: 195,000 117,000 5.00 $ 3.00 48,000 $ 69,000 (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 16%? 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 19%? 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 5%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 11%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 6-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed
Costs [LO6-1, LO6-4]
Miller Company's contribution format income statement for the most recent month is shown below:
Sales (39,000 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Required:
Total
$ 312,000
195,000
Per Unit
$ 8.00
117,000
5.00
$ 3.00
48,000
$ 69,000
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 16%?
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
19%?
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 5%?
4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per
unit, and the number of units sold decreases by 11%?
1. Net operating income
2. Net operating income
3. Net operating income
4. Net operating income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0098864d-7688-4ffb-9a03-ab272e8301b6%2F63e58ad4-e673-4a28-a435-da72ace34fc9%2Fjrbp1i_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 6-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed
Costs [LO6-1, LO6-4]
Miller Company's contribution format income statement for the most recent month is shown below:
Sales (39,000 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Required:
Total
$ 312,000
195,000
Per Unit
$ 8.00
117,000
5.00
$ 3.00
48,000
$ 69,000
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 16%?
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
19%?
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 5%?
4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per
unit, and the number of units sold decreases by 11%?
1. Net operating income
2. Net operating income
3. Net operating income
4. Net operating income
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