Miller Company's contribution format income statement for the most recent month is shown below: Total $ 240,000 150,000 Per Unit $ 8.00 Sales (30,000 units) Variable expenses 5.00 Contribution margin 90,000 $ 3.00 Fixed expenses 50,000 Net operating income $ 40,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 15%? 2. What is the revised net operating income if the selling price decreases by $1.10 per unit and the number of units sold increases by 25%? 3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $8,000, and the number of units sold decreases by 3%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 10%? Answer is complete but not entirely correct. 1. Net operating income 2$ 53,500 O 2. Net operating income 3. Net operating income 4. Net operating income 13,375 X 61,310 33,700 X
Miller Company's contribution format income statement for the most recent month is shown below: Total $ 240,000 150,000 Per Unit $ 8.00 Sales (30,000 units) Variable expenses 5.00 Contribution margin 90,000 $ 3.00 Fixed expenses 50,000 Net operating income $ 40,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 15%? 2. What is the revised net operating income if the selling price decreases by $1.10 per unit and the number of units sold increases by 25%? 3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $8,000, and the number of units sold decreases by 3%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 10%? Answer is complete but not entirely correct. 1. Net operating income 2$ 53,500 O 2. Net operating income 3. Net operating income 4. Net operating income 13,375 X 61,310 33,700 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Exercise 5-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO5-1, LO5-4]
Miller Company’s contribution format income statement for the most recent month is shown below:
| Total | Per Unit | |
|---|---|---|
| Sales (30,000 units) | $ 240,000 | $ 8.00 |
| Variable expenses | 150,000 | 5.00 |
| Contribution margin | 90,000 | $ 3.00 |
| Fixed expenses | 50,000 | |
| Net operating income | $ 40,000 |
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 15%?
2. What is the revised net operating income if the selling price decreases by $1.10 per unit and the number of units sold increases by 25%?
3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $8,000, 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 30 cents per unit, and the number of units sold decreases by 10%?
![Exercise 5-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed
Costs [LO5-1, LO5-4]
Miller Company's contribution format income statement for the most recent month is shown below:
Total
Per Unit
Sales (30,000 units)
Variable expenses
$ 240,000
150,000
$ 8.00
5.00
Contribution margin
90,000
$ 3.00
Fixed expenses
50,000
$ 40,000
Net operating income
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 15%?
2. What is the revised net operating income if the selling price decreases by $1.10 per unit and the number of units sold increases by
25%?
3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $8,000, 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 30 cents per
unit, and the number of units sold decreases by 10%?
X Answer is complete but not entirely correct.
1. Net operating income
$
53,500
2. Net operating income
$
13,375
3. Net operating income
$
61,310
4. Net operating income
$
33,700](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F16afad9b-824d-42b7-9e40-175f68ea31da%2F78cd8615-3e36-465c-a36c-f99862aa0166%2F633v33_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 5-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed
Costs [LO5-1, LO5-4]
Miller Company's contribution format income statement for the most recent month is shown below:
Total
Per Unit
Sales (30,000 units)
Variable expenses
$ 240,000
150,000
$ 8.00
5.00
Contribution margin
90,000
$ 3.00
Fixed expenses
50,000
$ 40,000
Net operating income
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 15%?
2. What is the revised net operating income if the selling price decreases by $1.10 per unit and the number of units sold increases by
25%?
3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $8,000, 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 30 cents per
unit, and the number of units sold decreases by 10%?
X Answer is complete but not entirely correct.
1. Net operating income
$
53,500
2. Net operating income
$
13,375
3. Net operating income
$
61,310
4. Net operating income
$
33,700
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 7 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education