Question
In: Accounting
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 (34,000 units) | $ | 238,000 | $ | 7.00 | ||
| Variable expenses | 136,000 | 4.00 | ||||
| Contribution margin | 102,000 | $ | 3.00 | |||
| Fixed expenses | 47,000 | |||||
| Net operating income | $ | 55,000 | ||||
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 $1.40 per unit and the number of units sold increases by 23%?
3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $8,000, 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 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 12%?
Solutions
Expert Solution
All the given 4 cases are solved with proper workings below.
ekkarill92 answered 2 years agoRelated Solutions
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 (44,000
units)
$
396,000
$
9.00
Variable expenses
264,000
6.00
Contribution margin
132,000
$
3.00
Fixed expenses
47,000
Net operating income
$
85,000
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales
increase by 13%?
2. What is the revised net operating income if the selling price
decreases by $1.20 per unit and the number...
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 (38,000 units)
$
342,000
$
9.00
Variable expenses
228,000
6.00
Contribution margin
114,000
$
3.00
Fixed expenses
47,000
Net operating income
$
67,000
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales
increase by 19%?
2. What is the revised net operating income if the selling price
decreases by $1.20 per unit and the number...
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 (32,000 units)
$
160,000
$
5.00
Variable expenses
64,000
2.00
Contribution margin
96,000
$
3.00
Fixed expenses
46,000
Net operating income
$
50,000
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales
increase by 17%?
2. What is the revised net operating income if the selling price
decreases by $1.20 per unit and the number...
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) $ 186,000 $ 6.00 Variable expenses 93,000 3.00 Contribution
margin 93,000 $ 3.00 Fixed expenses 49,000 Net operating income $
44,000 Required: (Consider each case independently):
1. What is the revised net operating income if unit sales
increase by 19%?
2. What is the revised net operating income if the selling price
decreases by $1.50 per unit and the number...
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 (33,000 units)
$
231,000
$
7.00
Variable expenses
132,000
4.00
Contribution margin
99,000
$
3.00
Fixed expenses
48,000
Net operating income
$
51,000
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 $1.40 per unit and the...
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 (36,000 units)
$
216,000
$
6.00
Variable expenses
108,000
3.00
Contribution margin
108,000
$
3.00
Fixed expenses
41,000
Net operating income
$
67,000
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales
increase by 17%?
2. What is the revised net operating income if the selling price
decreases by $1.20 per unit and the number...
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 (33,000 units)
$
231,000
$
7.00
Variable expenses
132,000
4.00
Contribution margin
99,000
$
3.00
Fixed expenses
48,000
Net operating income
$
51,000
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 $1.40 per unit and the...
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 (44,000 units)
$
308,000
$
7.00
Variable expenses
176,000
4.00
Contribution margin
132,000
$
3.00
Fixed expenses
40,000
Net operating income
$
92,000
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales
increase by 17%?
2. What is the revised net operating income if the selling price
decreases by $1.20 per unit and the number...
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 (30,000
units)
$
210,000
$
7.00
Variable expenses
120,000
4.00
Contribution margin
90,000
$
3.00
Fixed expenses
45,000
Net operating income
$
45,000
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales
increase by 13%?
2. What is the revised net operating income if the selling price
decreases by $1.40 per unit and the number...
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 (35,000 units)
$
175,000
$
5.00
Variable expenses
70,000
2.00
Contribution margin
105,000
$
3.00
Fixed expenses
40,000
Net operating income
$
65,000
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales
increase by 12%?
2. What is the revised net operating income if the selling price
decreases by $1.50 per unit and the number...
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