Question
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (36,000 units) $ 216,000 $ 6.00 Variable
Miller Companys contribution format income statement for the most recent month is shown below:
Total | Per Unit | |||||
Sales (36,000 units) | $ | 216,000 | $ | 6.00 | ||
Variable expenses | 108,000 | 3.00 | ||||
Contribution margin | 108,000 | $ | 3.00 | |||
Fixed expenses | 44,000 | |||||
Net operating income | $ | 64,000 | ||||
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 18%?
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 $8,000, 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 10%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 5%?
Miller Company's contribution format income statement for the most recent month is shown below: Sales (36,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $216,000 188,000 108,000 44,000 $ 64,000 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 18%? 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 $8,000, 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 10%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 5%? Net operating income Net operating income Net operating income Net operating incomeStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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