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Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit $ 8.00 $ 304,000 190,000 5.00 $ 3.00 Sales (38,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 114,000 45,000 $ 69,000 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 $1.50 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 $1.50 per unit, fixed expenses increase by $8,000, 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 30 cents per unit, and the number of units sold decreases by 13%?

Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit $ 8.00 $ 304,000 190,000 5.00 $ 3.00 Sales (38,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 114,000 45,000 $ 69,000 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 $1.50 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 $1.50 per unit, fixed expenses increase by $8,000, 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 30 cents per unit, and the number of units sold decreases by 13%?

FINANCIAL ACCOUNTING
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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Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit $ 8.00 $ 304,000 190,000 5.00 114,000 $ 3.00 45,000 $ 69,000 Sales (38,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 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 $1.50 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 $1.50 per unit, fixed expenses increase by $8,000, 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 30 cents per unit, and the number of units sold decreases by 13%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income
Transcribed Image Text:Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit $ 8.00 $ 304,000 190,000 5.00 114,000 $ 3.00 45,000 $ 69,000 Sales (38,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 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 $1.50 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 $1.50 per unit, fixed expenses increase by $8,000, 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 30 cents per unit, and the number of units sold decreases by 13%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income
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