Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (35,000 units) Variable expenses $ 280, 000 175, 000 $8.00 5.00 Contribution margin 105, 000 $ 3.00 Fixed expenses 46, 000 $59,000 Net operating income 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 $1.50 per unit and the number of units sold increases by 19%? 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 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 10 cents per unit, and the number of units sold decreases by 9%?
Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (35,000 units) Variable expenses $ 280, 000 175, 000 $8.00 5.00 Contribution margin 105, 000 $ 3.00 Fixed expenses 46, 000 $59,000 Net operating income 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 $1.50 per unit and the number of units sold increases by 19%? 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 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 10 cents per unit, and the number of units sold decreases by 9%?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Miller Company's contribution format income statement for the most recent month is shown below:
Total
Per Unit
Sales (35,000 units)
Variable expenses
$ 280, 000
175, 000
$8.00
5.00
Contribution margin
105, 000
$3.00
Fixed expenses
46,000
$59,000
Net operating income
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 $1.50 per unit and the number of units sold increases by
19%?
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 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 10 cents per
unit, and the number of units sold decreases by 9%?
Transcribed Image Text: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 by
19%?
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 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 10 cents per
unit, and the number of units sold decreases by 9%?
X Answer is not complete.
Net operating
income
Net operating
income
Net operating
income
Net operating
income
1.
$
73,700
2.
16,475
3.
$4
91,475
4.
%24
%24
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