Question
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (38,000 units) $ 228,000 $ 6.00 Variable
Miller Companys contribution format income statement for the most recent month is shown below:
Total | Per Unit | |
---|---|---|
Sales (38,000 units) | $ 228,000 | $ 6.00 |
Variable expenses | 114,000 | 3.00 |
Contribution margin | 114,000 | $ 3.00 |
Fixed expenses | 48,000 | |
Net operating income | $ 66,000 |
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 10%?
2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 24%?
3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 8%?
4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 12%?
Miller Company's contribution format income statement for the most recent month is shown below: Sales (38,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 228,000 114,000 114,000 48,000 $ 66,000 Per Unit $ 6.00 3.00 $ 3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 10%? 2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 24%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 8%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 12%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income
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