Miller Company's contribution format income statement for the most recent month is shown below:TotalPer UnitSales (35,000 units)Variable expenses$ 280, 000175, 000$8.005.00Contribution margin105, 000$3.00Fixed expenses46,000$59,000Net operating incomeRequired:(Consider each case independently):1. What is the revised net operating income if unit sales increase by 14%?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 by19%?3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $9,000, and thenumber 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 10 cents perunit, and the number of units sold decreases by 9%? 1. What is the revised net operating income if unit sales increase by 14%?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 by19%?3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $9,000, and thenumber 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 10 cents perunit, and the number of units sold decreases by 9%?X Answer is not complete.Net operatingincomeNet operatingincomeNet operatingincomeNet operatingincome1.$73,7002.16,4753.$491,4754.%24%24

Part 1 Increase in sale units=35000×100+14%=39900

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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Last month when Holiday shane, Inc., sold 42,000 units, total sales were $400,000, total variable expenses were $244,000, and fixed expenses were $39,700. 20 questions left-Renews M Required: Enter question 1. What is the company's contribution margin (CM) ratio?
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% ?
Last year’s contribution format income statement for Huerra Company is given below: Total Unit Sales $ 1,002,000 $ 50.10 Variable expenses 601,200 30.06 Contribution margin 400,800 20.04 Fixed expenses 316,800 15.84 Net operating income 84,000 4.20 Income taxes @ 40% 33,600 1.68 Net income $ 50,400 $ 2.52 The company had average operating assets of $491,000 during the year. Required: Compute last year’s margin, turnover, and return on investment (ROI). For each of the following questions, indicate whether last year’s margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI. Consider each question separately. Using Lean Production, the company is able to reduce the average level of inventory by $100,000. The company achieves a cost savings of $10,000 per year by using less costly materials. The company purchases machinery and equipment that increase average operating assets by $125,000.…
Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 33.00 19.00 $ 14.00 Sales (8,500 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 280,500 161,500 119,000 54,700 $ 64,300 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 70 units? 2. What would be the revised net operating income per month if the sales volume decreases by 70 units? 3. What would be the revised net operating income per month if the sales volume is 7,500 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
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Creswell Corporation's fixed monthly expenses are $30,000 and its contribution margin ratio is 63%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $92,000? Multiple Choice $4,040 $27,960 $62,000 $57,960
Gadubhai
Jilk Incorporated's contribution margin ratio is 61% and its fixed monthly expenses are $48,500. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $139,000? $84,790 $5,710 $36,290 $90,500
Green Valley Corp.'s contribution format income statement for the most recent month follows: Sales $ 506,000 Variable expenses 236,500 Contribution margin 269,500 Fixed expenses 241,700 Net operating income $ 27,800 Required: a. Compute the degree of operating leverage to two decimal places. b. Using the degree of operating leverage, estimate the percentage change in net operating income that should result from a 3% increase in sales. c. If Green Valley’s competitor Black Mountain Inc. has a degree of operating leverage as 8, which company has the higher operating risk?
Miller Company’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (33,000 units) $ 297,000 $ 9.00 Variable expenses 198,000 6.00 Contribution margin 99,000 $ 3.00 Fixed expenses 43,000 Net operating income $ 56,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 14%? 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 17%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $9,000, and the number 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 20 cents per unit, and the number of units sold decreases by 7%? 1. net operatin income = 2. net operatin…
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