Miller Company's most recent income statement follows: Total Per Unit $672,000 $28 Sales (24,000 units) Less: Variable expenses 408,000 17 • Contribution margin 264,000 $11 Less: Fixed expenses 28,000 Net income $236,000 Consider each of the following cases independently. Required: 1. Prepare a new income statement if the sales volume increases by 30%, and intermediate calculations. Round "Per Unit" answers to 2 decimal places.) Total Per Unit Sales
Miller Company's most recent income statement follows: Total Per Unit $672,000 $28 Sales (24,000 units) Less: Variable expenses 408,000 17 • Contribution margin 264,000 $11 Less: Fixed expenses 28,000 Net income $236,000 Consider each of the following cases independently. Required: 1. Prepare a new income statement if the sales volume increases by 30%, and intermediate calculations. Round "Per Unit" answers to 2 decimal places.) Total Per Unit Sales
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:19
Miller Company's most recent income statement follows:
Total
Per Unit
$672,000
$28
Sales (24,000 units)
Less: Variable expenses
408,000
17
Contribution margin
264,000
$11
28,000
Less: Fixed expenses
Net income
$236,000
Consider each of the following cases independently.
Required:
1. Prepare a new income statement if the sales volume increases by 30%, and
intermediate calculations. Round "Per Unit" answers to 2 decimal places.)
Total
Per Unit
Sales
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Transcribed Image Text:2. Prepare a new income statement if the selling price decreases by $3.0 per unit, and the sales volume increases by 20%. (Do not
round intermediate calculations. Round "Per Unit" answers to 2 decimal places.)
Total
Per Unit
8
Sales
3. Prepare a new income statement if the selling price increases by $1.0 per unit, fixed expenses increase by $5,000 and the sales
volume decreases by 5%. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.)
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