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Miller Company's most recent income statement follows: Consider each of the following cases independently. Requlred: 1. Prepare a new income statement if the sales volume

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Miller Company's most recent income statement follows: Consider each of the following cases independently. Requlred: 1. Prepare a new income statement if the sales volume increases by 30%, and the selling price decreases by $3.00. (Do not round Intermedlate coleulatlons. Round "Per Unit" answers to 2 declmal places.) 2. Prepare a new income statement if the selling price decreases by $25 per unit, and the sales volume increases by 10%. (Do not round Intermedlate coleulatlons. Round "Per Unit" answers to 2 declmal pleces.) 3. Prepare a new income statement if the selling price increases by $1.0 per unit, fixed expenses increase by $7,000 and the sales volume decreases by 5% (Do not round Intermedlate calculatlons. Round "Per Unlt" answers to 2 declmal ploces.) 4. Prepare a new income statement if the selling price increases by 5%, variable expenses increase by $0.25 per unit and the sales volume decreases by 25%. (Do not round Intermedlate colculatlons. Round "Per Unlt" answers to 2 declmel pleces.) Magic Realm, Inc. has developed a new fantasy board game. The company sold 15,000 games last year at a selling price of $21 per game. Fixed costs associated with the game total $185,000 per year, and variable costs are $7 per game. Production of the game is entrusted to a printing contractor. Variable costs consist mostly of payments to this contractor. Required: 1-a. Prepare an income statement for the game last year. 1-b. Compute the degree of operating leverage. (Round your answer to 2 declmal places.) 2. Management believes that the company's sales will increase by 2,700 games next year. Compute the following: a. The expected percentage increase in net income for next year. (Do not round Intermedlate caleulatlons. Round your onswers to the neorest whole percentage.) b. The expected total dollar net income for next year. (Do not prepare an income statement; use the degree of operating leverage to compute your answer.) (Do not round Intermedlate calculatlons.) Carter Manufacturing Company manufactures exclusive pens which sell for $75 per unit. Its unit variable costs are $58 and fixed expenses are $391,500. The company pays income tax at the rate of 50%. Requlred: 1. How many units must Carter sell to earn an after-tax income of $25,400 ? 2. Re-compute the sales level to earn the above-mentioned after-tax income if the tax rate changes to 40%

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