answer the 5 questions from the first image using the work provided in images 2-4
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3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5% ? CalculationofnewsellingpriceperunitCalculationofnewunitsalesCalculationofNewFixedexpensesCaleulationofnewtotalsalesCalculationofnewcontributionmarginCalculationofrevisednetoperatingincome=$15.00+$1.50=$16.50=20,000(10.05)=19,000=$70,000+$20,000=$90,000=19,000$16.50=$313,500=$313,5008171,000=$142,500=$142,500($70,000+$20,000)=$52,500 Calculate the company's break even point in units. Round to a whole number. QUESTION 2 What is total contribution margin at the company's break even point? Your answer should be a number. QUESTION 3 Calculate the company's current degree of operating leverage. QUESTION 4 Calculate the percentage that variable costs represent in the company's cost structure. Round your answer to the nearest whole percent. QUESTION 5 If sales decrease by 10%, calculate the expected percentage decrease in net income. Express your answer as a percent. 4. What is the revised net operating income if the selling price per unit increases by 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by 10% ? Calculation of new selling price per unit =$15.00(1+0.12) =$16.80=$9.00+$0.60=$9.60 Calculation of new variable expenses per unit =$9.00+$0.60 =$9.60 Calculationofnewunitsales=Calculationofnewtotalsales==20,000(10.10)=18,00018,000$16.80$302,400 Calculation of new total sales =18,000$16.80 =$302,400 Calculationofnewcontributionmargin=$302,400($9.6018,000)=$129,600 Calculationofrevisednetoperatingincome==$129,600$70,000$59,600 2) What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 25% For case 2, there is a decrease in the selling price by $1.50 per unit and there is an increase in the number of units sold by 25%. To find revised operating Income (Net): Calculationofnewsellingpriceperunit=$15.00$1.50=$13.50Calculationofnewunitsales==Calculationofnewtotalsales=NewVariableExpense=20,000(1+0.25)25,00025,000$13.50=$337,50025,000$9=$225,000 Calculajon of new contribution margin =$337,500$225,000 =$112,500 Calculation of revised net operating income =$112,500$70,000 EXERCISE 6-13 EXERCISE 6-13 CHANGES IN SELLING PRICE, SALES VOLUME, VARIABLE COST PER UNIT, AND TOTAL FIXED COSTS Miller Company's contribution format income statement for the most recent month is shown 1 What is the revised net operating income if unit sales increase by 15% ? UnitsaleIncreaseinunitsaleRevisedUnitsale=$15=15%=$15.00(1+0.15)=$17.25 The revised operating income would be calculated as follows: NewunitsalesNewtotalsalesCalculationofnewcontributionmargiaCalculationofrevisednetoperatingincome=20,000(1+0.15)=23,000=23,000units$17.25=$345,000=$345,000$180,000=$165,000=$165,000$70,000=$95,000 2) What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 25%
