Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 19%? 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 19%? 3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 6%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 11%?
Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 19%? 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 19%? 3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 6%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 11%?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Miller Company's contribution format income statement for the most recent month is shown below:
Sales (36,000 units)
Total
$ 216,000
Per Unit
$ 6.00
3.00
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Required:
108,000
108,000
$ 3.00
49,000
$ 59,000
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 19%?
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 19%?
3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses
increase by $7,000, and the number of units sold decreases by 6%?
4. What is the revised net operating income if the selling price per unit increases by 10%, variable
expenses increase by 10 cents per unit, and the number of units sold decreases by 11%?
1. Net operating income
2. Net operating income
3. Net operating income
4. Net operating income
$
73,040
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VIEWStep 4: Calculate revised net operating income when unit sales, selling price and fixed expenses change
VIEWStep 5: Calculate revised net operating income when unit sales, selling price and variable expenses change
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