Miller Company's contribution format income statement for the most recent month is shown below: Sales (33,000 units) Variable expenses Total $ 264,000 165,000 Per Unit $ 8.00 5.00 Contribution margin Fixed expenses Net operating income Required: 99,000 $ 3.00 45,000 $ 54,000 (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 18%? 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 17%? 3. What is the revised net operating income if the selling price increases by $1.20 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 20 cents per unit, and the number of units sold decreases by 7%? 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 (33,000 units) Variable expenses Total $ 264,000 165,000 Per Unit $ 8.00 5.00 Contribution margin Fixed expenses Net operating income Required: 99,000 $ 3.00 45,000 $ 54,000 (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 18%? 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 17%? 3. What is the revised net operating income if the selling price increases by $1.20 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 20 cents per unit, and the number of units sold decreases by 7%? 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
Related questions
Question
pre.3
![Miller Company's contribution format income statement for the most recent month is shown below:
Sales (33,000 units)
Variable expenses
Total
$ 264,000
165,000
Per Unit
$ 8.00
5.00
Contribution margin
Fixed expenses
Net operating income
Required:
99,000
$ 3.00
45,000
$ 54,000
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 18%?
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
17%?
3. What is the revised net operating income if the selling price increases by $1.20 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 20 cents per
unit, and the number of units sold decreases by 7%?
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%2F87bcb50f-59d5-43e2-aba9-cdb2ca966cc3%2Febcdb8b8-0d0a-40bc-a9a5-4f61cb1a7c5c%2F1lo4tao_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Miller Company's contribution format income statement for the most recent month is shown below:
Sales (33,000 units)
Variable expenses
Total
$ 264,000
165,000
Per Unit
$ 8.00
5.00
Contribution margin
Fixed expenses
Net operating income
Required:
99,000
$ 3.00
45,000
$ 54,000
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 18%?
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
17%?
3. What is the revised net operating income if the selling price increases by $1.20 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 20 cents per
unit, and the number of units sold decreases by 7%?
1. Net operating income
2 Net operating income
3. Net operating income
4. Net operating income
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Step 1: Introduce to income statement
VIEWStep 2: Working for revised net operating income for required #1
VIEWStep 3: Working for revised net operating income for required #2
VIEWStep 4: Working for revised net operating income for required #3
VIEWStep 5: Working for revised net operating income for required #4
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