Miller Company's contribution format income statement for the most recent month is shown below: Total $369,000 246,000 Per Unit $9.00 6.00 123,000 $ 3.00 42,000 $ 81,000 Sales (41,000 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 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 increas 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, 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 cen unit, and the number of units sold decreases by 11%? Answer is complete but not entirely correct. $ 96,990 $ 47,298 $ 113,590 $ 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income 56,523 x A
Miller Company's contribution format income statement for the most recent month is shown below: Total $369,000 246,000 Per Unit $9.00 6.00 123,000 $ 3.00 42,000 $ 81,000 Sales (41,000 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 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 increas 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, 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 cen unit, and the number of units sold decreases by 11%? Answer is complete but not entirely correct. $ 96,990 $ 47,298 $ 113,590 $ 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income 56,523 x A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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