Question

Miller Company’s contribution format income statement for the most recent month is shown below: Total Per...

Miller Company’s contribution format income statement for the most recent month is shown below:

 Total Per Unit Sales (31,000 units) \$ 279,000 \$ 9.00 Variable expenses 186,000 6.00 Contribution margin 93,000 \$ 3.00 Fixed expenses 46,000 Net operating income \$ 47,000

Required:

(Consider each case independently):

1. What is the revised net operating income if unit sales increase by 14%?

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 21%?

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 2%?

4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 15%?

Miller Company’s contribution format income statement for the most recent month is shown below:

 Total Per Unit Sales (31,000 units) \$ 279,000 \$ 9.00 Variable expenses 186,000 6.00 Contribution margin 93,000 \$ 3.00 Fixed expenses 46,000 Net operating income \$ 47,000

Required:

(Consider each case independently):

1. What is the revised net operating income if unit sales increase by 14%?

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 21%?

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 2%?

4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 15%?

Miller Company’s contribution format income statement for the most recent month is shown below:

 Total Per Unit Sales (31,000 units) \$ 279,000 \$ 9.00 Variable expenses 186,000 6.00 Contribution margin 93,000 \$ 3.00 Fixed expenses 46,000 Net operating income \$ 47,000

Required:

(Consider each case independently):

1. What is the revised net operating income if unit sales increase by 14%?

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 21%?

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 2%?

4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 15%?

1. Net Operating Income

2. Net Operating income

3. Net Operating income

4. Net Operating income

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