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plsss help w these 2 questions! thank youu Exercise 6-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs
plsss help w these 2 questions! thank youu
Exercise 6-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs (L06-1, LO6-4) Miller Company's contribution format income statement for the most recent month is shown below: Sales (39,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 273,000 156,000 117,000 42,000 $ 75,000 Per Unit $ 7.00 4.00 $ 3.00 Required: (Consider each case independently): 1. What is the revised net operating income If unit sales increase by 11%? 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 17%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 2%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 5%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income Exercise 6-18 (Algo) Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio (LO6-1, LO6-3, LO6-5, L06-6, LO6-7) Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Contribution margin Fixed expenses Net operating income Total Per Unit $ 628,000 $ 40 439,600 28 188,400 $ 12 145,200 $ 43,200 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each month to attain a target profit of $67,200? 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. 4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. 5. What is the company's CM ratio? If the company can sell more units thereby increasing sales by $77,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Req 3B Req 4 Reg 5 What is the monthly break-even point in unit sales and in dollar sales? units Break-even point in unit sales Break-even point in dollar sales Reg Req2 > Step by Step Solution
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