Question
Miller Companys most recent income statement follows: Total Per Unit Sales (15,000 units) $ 300,000 $ 20 Less: Variable expenses 180,000 12 Contribution margin 120,000
Miller Companys most recent income statement follows:
Total | Per Unit | ||||||
Sales (15,000 units) | $ | 300,000 | $ | 20 | |||
Less: Variable expenses | 180,000 | 12 | |||||
Contribution margin | 120,000 | $ | 8 | ||||
Less: Fixed expenses | 70,000 | ||||||
Net income | $ | 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.)
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.)
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.)
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.)
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