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Exercise 5-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO5-1, LO5-4] Miller Company's contribution format income statement for the most recent month is shown below: Exercise 5-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income [LO5-1] Whirly Corporation's contribution format income statement for the most recent month is shown below: \begin{tabular}{|l|l|l|} \hline 1. Break-even point in unit sales & & baskets \\ \hline 2. Break-even point in dollar sales & & \\ \hline 3. Break-even point in unit sales & & baskets \\ \hline 3. Break-even point in dollar sales & & \\ \hline \end{tabular} Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.) \begin{tabular}{|l|l|} \hline 1. Net operating income & \\ \hline 2. Net operating income & \\ \hline 3. Net operating income & \\ \hline 4. Net operating income & \\ \hline \end{tabular} \begin{tabular}{lrr} & Total & Per Unit \\ Sales (34,000 units) & $238,000 & $7.00 \\ Variable expenses & 136,000 & 4.00 \\ \cline { 2 - 3 } Contribution margin & 102,000 & $3.00 \\ Fixed expenses & 42,000 & = \\ Net operating income & $60,000 & \end{tabular} Lindon Company is the exclusive distributor for an automotive product that sells for $24.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $118,800 per year. The company plans to sell 18,100 units this year. Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 15% ? 2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 18% ? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 6% ? 4 . What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 11% ? \begin{tabular}{|l|l|} \hline 1. Variable expense per unit & \\ \hline 2. Break-even point in units & \\ \hline 2. Break-even point in dollar sales & \\ \hline 3. Unit sales needed to attain target profit & \\ \hline 3. Dollar sales needed to attain target profit & \\ \hline 4. New break-even point in unit sales & \\ \hline 4. New break-even point in dollar sales & \\ \hline 4. Dollar sales needed to attain target profit \\ \hline \end{tabular} Exercise 5-6 (Algo) Break-Even Analysis [LO5-5] Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $24 per unit. The company's monthly fixed expense is $10,400. \begin{tabular}{lrr} & \multicolumn{1}{c}{ Total } & Per Unit \\ \hline Sales (8,600 units ) & $301,000 & $35.00 \\ Variable expenses & 163,400 & 19.00 \\ \cline { 2 - 3 } Contribution margin & 137,600 & $16.00 \\ \hline Fixed expenses & 55,000 & \\ Net operating income & $82,600 \\ \hline \end{tabular} Required: Required: 1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.) 2. What is the break-even point in unit sales and in dollar sales? 3. What amount of unit sales and dollar sales is required to attain a target profit of $46,800 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $2.40 per unit. What is the company's new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a taraet profit of $46.800? (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 60 units? 2. What would be the revised net operating income per month if the sales volume decreases by 60 units? 3. What would be the revised net operating income per month if the sales volume is 7,600 units