Miller Company’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (33,000 units) $ 198,000 $ 6.00 Variable expenses 99,000 3.00 Contribution margin 99,000 $ 3.00 Fixed expenses 42,000 Net operating income $ 57,000 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 $1.40 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 $1.40 per unit, fixed expenses increase by $9,000, 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 20%, variable expenses increase by 40 cents per unit, and the number of units sold decreases by 8%?
Miller Company’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (33,000 units) $ 198,000 $ 6.00 Variable expenses 99,000 3.00 Contribution margin 99,000 $ 3.00 Fixed expenses 42,000 Net operating income $ 57,000 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 $1.40 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 $1.40 per unit, fixed expenses increase by $9,000, 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 20%, variable expenses increase by 40 cents per unit, and the number of units sold decreases by 8%?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 (33,000 units) | $ 198,000 | $ 6.00 |
| Variable expenses | 99,000 | 3.00 |
| Contribution margin | 99,000 | $ 3.00 |
| Fixed expenses | 42,000 | |
| Net operating income | $ 57,000 |
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 $1.40 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 $1.40 per unit, fixed expenses increase by $9,000, 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 20%, variable expenses increase by 40 cents per unit, and the number of units sold decreases by 8%?
![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
$ 198,000
99,000
$ 6.00
Sales (33, 000 units)
Variable expenses
3.00
Contribution margin
99,000
$ 3.00
Fixed expenses
42,000
Net operating income
$ 57,000
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 $1.40 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 $1.40 per unit, fixed expenses
increase by $9,000, 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 20%, variable expenses
increase by 40 cents per unit, and the number of units sold decreases by 8%?
1. Net operating income
2. Net operating income
3. Net operating income
4. Net operating income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F16afad9b-824d-42b7-9e40-175f68ea31da%2F26e6d827-6cb9-441d-8e03-e2977450fbb2%2Fv9rald_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
$ 198,000
99,000
$ 6.00
Sales (33, 000 units)
Variable expenses
3.00
Contribution margin
99,000
$ 3.00
Fixed expenses
42,000
Net operating income
$ 57,000
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 $1.40 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 $1.40 per unit, fixed expenses
increase by $9,000, 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 20%, variable expenses
increase by 40 cents per unit, and the number of units sold decreases by 8%?
1. Net operating income
2. Net operating income
3. Net operating income
4. Net operating income
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