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%?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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