Question 3 Miller Company's most recent income statement follows: Sales (20,000 units) Less: Variable expenses Contribution margin Less: Fixed expenses Net income: Total $300,000 180,000 120,000 70,000 50,000 Per Unit $15.00 9.00 6.00 Required: Prepare a new income statement under each of the following conditions(consider each case independently). The sales volume increased by 15% The selling price decreases by $1.5 per unit and the sales volume increases by 25% The selling price increases by $1.5 per unit and fixed expenses increase by $20,000 and the sales volume decreases by 5% The selling price increases by 12%, variable expenses increase by 60 cents per unit, and sales volume decrease by 10%
Question 3 Miller Company's most recent income statement follows: Sales (20,000 units) Less: Variable expenses Contribution margin Less: Fixed expenses Net income: Total $300,000 180,000 120,000 70,000 50,000 Per Unit $15.00 9.00 6.00 Required: Prepare a new income statement under each of the following conditions(consider each case independently). The sales volume increased by 15% The selling price decreases by $1.5 per unit and the sales volume increases by 25% The selling price increases by $1.5 per unit and fixed expenses increase by $20,000 and the sales volume decreases by 5% The selling price increases by 12%, variable expenses increase by 60 cents per unit, and sales volume decrease by 10%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 3
Miller Company's most recent income statement follows:
Sales (20,000 units)
Less: Variable expenses
Contribution margin
Less: Fixed expenses
Net income:
Total
$300,000
180,000
120,000
70,000
50,000
Per Unit
$15.00
9.00
6.00
Required:
Prepare a new income statement under each of the following conditions(consider each case
independently).
The sales volume increased by 15%
The selling price decreases by $1.5 per unit and the sales volume increases by 25%
The selling price increases by $1.5 per unit and fixed expenses increase by $20,000 and the sales
volume decreases by 5%
The selling price increases by 12%, variable expenses increase by 60 cents per unit, and sales
volume decrease by 10%
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