Miller Company's contribution format income statement for the most recent month is shown below: Sales (40,000...
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Miller Company's contribution format income statement for the most recent month is shown below: Sales (40,000 units) Variable expenses Total $ 280,000 160,000 Contribution margin 120,000 Fixed expenses 45,000 Net operating income $ 75,000 Required: Per Unit $ 7.00 4.00 $ 3.00 (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 12%? 2. What is the revised net operating income if the selling price decreases by $1.10 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 $1.10 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 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 13%? 1. Net operating income $ 89,400 2. Net operating income 3. Net operating income 4. Net operating income $ 101,160 Miller Company's contribution format income statement for the most recent month is shown below: Sales (40,000 units) Variable expenses Total $ 280,000 160,000 Contribution margin 120,000 Fixed expenses 45,000 Net operating income $ 75,000 Required: Per Unit $ 7.00 4.00 $ 3.00 (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 12%? 2. What is the revised net operating income if the selling price decreases by $1.10 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 $1.10 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 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 13%? 1. Net operating income $ 89,400 2. Net operating income 3. Net operating income 4. Net operating income $ 101,160
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Answer rating: 100% (QA)
1 Increase in Unit Sales by 12 Original unit sales 40000 units Increase by 12 40000 units 012 4800 units New unit sales 40000 units 4800 units 44800 u... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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