Question
Miller Company's contribution format income statement for the most recent month is shown below: TotalPer UnitSales (31,000 units)$186,000$6.00Variable expenses93,0003.00Contribution margin93,000$3.00Fixed expenses42,000Net operating income$51,000 Required: (Consider
Miller Company's contribution format income statement for the most recent month is shown below:
TotalPer UnitSales (31,000 units)$186,000$6.00Variable expenses93,0003.00Contribution margin93,000$3.00Fixed expenses42,000Net operating income$51,000
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 13%?
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 17%?
3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $8,000, and the number of units sold decreases by 3%?
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 6%?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started