Question
Miller Companys most recent income statement follows: Total Per Unit Sales (16,000 units) $ 320,000 $ 20 Less: Variable expenses 160,000 10 Contribution margin 160,000
Miller Companys most recent income statement follows: Total Per Unit Sales (16,000 units) $ 320,000 $ 20 Less: Variable expenses 160,000 10 Contribution margin 160,000 $ 10 Less: Fixed expenses 63,000 Net income $ 97,000 Consider each of the following cases independently. Required: 1. Prepare a new income statement if the sales volume increases by 30%, and the selling price decreases by $3.00. (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 $2.5 per unit, and the sales volume increases by 10%. (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 $1.0 per unit, fixed expenses increase by $7,000 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 $0.25 per unit and the sales volume decreases by 25%. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.)
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