Miller Company's contribution format income statement for the most recent month is shown below:TotalPer Unit$10.00$ 350,0007.00$ 3.00Sales (35,000 units)Variable expensesContribution marginFixed expensesNet operating income245,000105,00041,000$ 64,000Required:(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 $1.20 per unit and the number of units sold increases by19%?1. Net operating income2. Net operating income3. Net operating income4. Net operating income3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $7,000, and thenumber of units sold decreases by 6%?4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents perunit, and the number of units sold decreases by 10%?Benitwww.Kaik

Lets understand the basics. Net operating income is a net income generated from the business…

Answered: Miller Company's contribution format…

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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iller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (32,000 units) $ 160,000 $5.00 Variable expenses 64,000 2.00 Contribution margin 96,000 $ 3.00 Fixed expenses 50,000 Net operating income $ 46,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 12% ? 2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 22% ? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 4% ? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 40 cents per unit, and the number of units sold decreases by 12% ?
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Miller Company's contribution format income statement for the most recent month is shown below: Per Unit $ 9.00 6.00 $ 3.00 Sales (41,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): Total $ 369,000 246,000 123,000 42,000 $ 81,000 1. What is the revised net operating income if unit sales increase by 13%? 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 21%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $8,000, and the number of units sold decreases by 5%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 11%? X Answer is complete but not entirely correct. 1. Net operating income $ 96,990 2. Net operating income $…
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