Miller Company's contribution format Income statement for the most recent month is shown below: Sales (37,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 222,082 111, eee 111,000 41,000 $ 70, eee Per Unit $6.00 3.ee $ 3.ee Required: (Consider each case Independently 1. What is the revised net operating income if unit sales increase by 17%? 2. What is the revised net operating income if the selling price decreases by $1.40 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 $1.40 per unit, fixed expenses increase by $7,000, 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 30 cents per unit, and the number of units sold decreases by 11%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income Lindon Company is the exclusive distributor for an automouve product that sells for $40.00 per unit and has a CM roto of 30% The company's fixed expenses are $246,000 per year. The company plans to sell 23,700 units this year Required: 1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.) 2. What is the break-even point in unit sales and in dollar sales? 3. What amount of unit sales and dollar sales is required to attain a target profit of $126,000 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4.00 per unit. What Is the company's new break-even point in unit sales and in dollar sales? What dollar sales is requtred to attain a target profit of $126,000? 1. Variable expense per unit 2. Break-even point in units 2. Break-even point in dollar sales 3. Unit sales needed to attain target profil 3. Dollar sales needed to attain target profit 4. New break-even point in unit Sales 4. New break-even point in dollar sales 4. Dollar sales needed to attain target profit Neptune Company has developed a small Inflatable toy that it is anxious to introduce to its customers. The company's Marketing Department estimates that demand for the new toy will range between 10,000 units and 35,000 units per month The new toy will sell for $10.00 per unit. Enough capacity exists in the company's plant to produce 15,000 units of the toy each month Variable expenses to manufacture and sell one unit would be $6.00, and incremental fixed expenses associated with the toy would total $30,000 per month Neptune has also identified an outside supplier who could produce the toy for a price of $5.00 per unit plus a fixed fee of $31,000 per month for any production volume up to 15,000 units. For a production volume between 15,001 and 35,000 units the fixed fee would increase to a total of $62,000 per month Required: 1. Calculate the break-even point in unit sales assuming that Neptune does not hire the outside supplier. 2 How much profit with Neptune eam assuming a. It produces and sells 15,000 units b. It does not produce any units and instead outsources the production of 15,000 units to the outside supplier and then sells those units to its customers. 3. Calculate the break-even point in unit sales assuming that Neptune plans to use all of its production capacity to produce the first 15,000 units that it sells and that it also commits to hiring the outside supplier to produce up to 20,000 additional units. 4. Assume that Neptune plans to use all of its production capacity to produce the first 15,000 units that it sells and that it also commits to hiring the outside supplier to produce up to 20,000 additional units. a. What total unit sales would Neptune need to achieve in order to equal the profit earned in requirement 22 b. What total unit sales would Neptune need to achieve in order to attain a target profit of $32.500 per month c. How much profit will Neptune eam if it sells 35,000 units per month? d. How much profit will Neptune earn if it sells 35,000 units per month and agrees to pay its marketing manager a bonus of 10 cents for each unit sold above the break-even point from requirement 3? 5. If Neptune outsources all production to the outside supplier how much profit will the company earn if it sells 35.000 units units 1. Break-even point in unit sales without hiring 2. Profit if produces and sells 26. Profit if outsources production and sells 3. Break-even point in unit salesno 4a. Total unit Sales 46. Total unit sales to achieve a target Profit of $32,500 40. Net operating income 4d Net operating income bonus to marketing manager 5. Net operating income, fully outsourced units units unit