Question
Miller Companys most recent income statement follows: Total Per Unit Sales (20,000 units) $ 440,000 $ 22 Less: Variable expenses 160,000 8 Contribution margin 280,000
Miller Companys most recent income statement follows:
Total | Per Unit | ||||||
Sales (20,000 units) | $ | 440,000 | $ | 22 | |||
Less: Variable expenses | 160,000 | 8 | |||||
Contribution margin | 280,000 | $ | 14 | ||||
Less: Fixed expenses | 67,000 | ||||||
Net income | $ | 213,000 | |||||
Consider each of the following cases independently.
Required:
1. Prepare a new income statement if the sales volume increases by 10%, and the selling price decreases by $4.00. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.)
2. Prepare a new income statement if the selling price decreases by $3.0 per unit, and the sales volume increases by 20%. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.)
3. Prepare a new income statement if the selling price increases by $2.0 per unit, fixed expenses increase by $8,000 and the sales volume decreases by 5%. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.)
4. Prepare a new income statement if the selling price increases by 5%, variable expenses increase by $0.10 per unit and the sales volume decreases by 30%. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.)
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