Required: Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%? 2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 18%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 3%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 7%?
Required: Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%? 2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 18%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 3%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 7%?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Sh2
Transcribed Image Text:Miller Company's contribution format income statement for the most recent month is shown below:
Per Unit
$ 9.00
6.00
$ 3.00
Sales (34,000 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Required:
(Consider each case independently):
Total
$ 306,000
204,000
102,000
40,000
$ 62,000
1. What is the revised net operating income if unit sales increase by 11%?
2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by
18%?
3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $7,000, and the
number of units sold decreases by 3%?
4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per
unit, and the number of units sold decreases by 7%?
1. Net operating income
2. Net operating income
3. Net operating income
4. Net operating income
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