Miller Company's most recent income statement follows: Per Unit $ 20 12 Sales (15, 000 units) Less: Variable expenses Contribution margin Less: Fixed expenses Net income Total $300,000 180,000 120,000 70,000 $ 50,000 Consider each of the following cases independently. Required: 1. Prepare a new income statement if the sales volume increases by 15%, and the selling price decreases by $1.00. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.) Total Per Unit Sales 2. Prepare a new income statement if the selling price decreases by $4 per unit, and the sales volume increases by 25%. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.) Total Per Unit Sales 3. Prepare a new income statement if the selling price increases by $1 per unit, fixed expenses increase by $20,000 and the sales volume decreases by 5%. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.) Total Per Unit Sales 4. Prepare a new income statement if the selling price increases by 5%, variable expenses increase by $1 per unit and the sales volume decreases by 10%. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.) Total Per Unit Sales 2 Magic Realm, Inc. has developed a new fantasy board game. The company sold 15,000 games last year at a selling price of $20 per game. Fixed costs associated with the game total $170,000 per year, and variable costs are $6 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. 10 points Total Per Unit Sales eBook Print References 1-b. Compute the degree of operating leverage. (Round your answer to 2 decimal places.) Degree of operating leverage 2. Management believes that the company's sales will increase by 3,000 games next year. Compute the following: a. The expected percentage Increase in net Income for next year. (Do not round Intermediate calculations.) Expected 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 Intermediate calculations.) Total expected net income Wesley Company manufactures and sells a single product. The company's Income statement at sales level of 15,000 units for last quarter follows: m. Total $600,000 420.000 180,000 146, 320 $ 33, 480 Sales Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income 10 points eBook Required: 1. What is the monthly break-even point in units sold and in sales dollars? Print Break-even Point Break-even point in units sold Break-even point in sales dollars References 2. Without resorting to computations, calculate the total contribution margin at the break-even point for the quarter. Total contribution margin 3-a. How many units would have to be sold each quarter to earn a target profit of $12,000? Use the formula method. Units sold to attain target profit Units sold to attain target profit 3 10 points 3-b. Verify your answer by preparing a contribution format Income statement at the target level of sales. Total Unit eBook Sales Print References 4. Refer to the original data. Compute the company's margin of safety for the quarter In units, In dollars and as a percentage of last quarter's sales. (Round "Percentage" answer to 1 decimal place, (.e., 0.123 should be considered as 12.3%).) Units Dollars Percentage Margin of safety 5. What is the company's CM ratio? If quarterly sales decrease by $80,000 and there is no change in fixed expenses, what would you expect the quarter's net operating Income to be? (Do not prepare an income statement, use the CM ratio to compute your answer.) CM ratio Net operating income