Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit $ 272,000 Sales (34,000 units) Variable expenses $ 8.00 5.00 170,000 Contribution margin 102,000 $ 3.00 Fixed expenses 47,000 Net operating income $ 55,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 10%? 2. What is the revised net operating income if the selling price decreases by $1.50 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 $1.50 per unit, fixed expenses increase by $7,000, 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 20 cents per unit, and the number of units sold decreases by 8%? 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: Total Per Unit $ 272,000 Sales (34,000 units) Variable expenses $ 8.00 5.00 170,000 Contribution margin 102,000 $ 3.00 Fixed expenses 47,000 Net operating income $ 55,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 10%? 2. What is the revised net operating income if the selling price decreases by $1.50 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 $1.50 per unit, fixed expenses increase by $7,000, 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 20 cents per unit, and the number of units sold decreases by 8%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income

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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Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,600 unita) Variable expenses Total $ 243,200 136, 800 Per Unit $32.00 18.00 Contribution nargin 106,400 $ 14.00 ried expenses 55,000 5 51,400 et operating Lncone Required: (Consider each case independently): 1 What would be the revised net operating income per month if the sales volume increases by 50 units? 2 What would be the revised net operating income per month if the sales volume decreases by 50 units? 3. What would be the revised net operating income per month if the sales volume is 6,600 units? 1. Revined net operating income 2. Revised net operating income 3. Revised net operating income