Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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%?

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Safe Hiring Audit The Employers Guide To Implementing A Safe Hiring Program

Authors: Lester S. Rosen

1st Edition

1889150517, 978-1889150512

More Books

Students also viewed these Accounting questions

Question

8. Do the organizations fringe benefits reflect diversity?

Answered: 1 week ago

Question

7. Do the organizations social activities reflect diversity?

Answered: 1 week ago