Question
In: Accounting
Kelly Company’s most recent contribution format income statement is shown below: Total Per Unit Sales (50,000...
Kelly Company’s most recent contribution format income statement is shown below:
|
Total |
Per Unit |
|||||
|
Sales (50,000 units) |
$ |
700,000 |
$ |
14 |
||
|
Variable costs |
300,000 |
6 |
||||
|
|
||||||
|
Contribution margin |
400,000 |
$ |
8 |
|||
|
Fixed costs |
240,000 |
|||||
|
|
||||||
|
Operating income |
$ |
160,000 |
||||
Required:
Prepare a new contribution format income statement with a per unit column under each of the following conditions (consider each case independently):
- The selling price increases by $1 per unit, fixed costs increase by $20,000, and the number of units sold decreases by 10%. Would this change be beneficial to the company? Briefly explain. ( 4 marks)
- Return to the original data. Variable costs increase by 60 cents per unit, the selling price increases by 15%, and the number of units sold decreases by 15%. Would this change be beneficial to the company? Briefly explain. ( 4 marks)
- Return to the original data. The selling price decreases by $2 per unit, fixed costs decrease by $30,000, and the variable costs per unit increases by 10%. Would this change be beneficial to the company? Briefly explain. ( 4 marks)
- Return to the original data. The number of units sold decreases by 5%, fixed costs increase by 10%, and the variable costs per unit decreases by $4 per unit. Would this change be beneficial to the company? Briefly explain. ( 4 marks)
i need this answer as soon as possible please
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Miller Company’s most recent contribution format income statement is shown below: Total Per Unit Sales...
Miller Company’s most recent contribution format income
statement is shown below:
Total Per Unit
Sales (33,000 units) $330,000 $10.00
Variable expenses 231,000 7.00
Contribution margin 99,000 $3.00
Fixed expenses 40,000
Net operating income $ 59,000
Required: Prepare a new contribution format income statement
under each of the following conditions (consider each case
independently): (Do not round intermediate calculations. Round your
"Per unit" answers to 2 decimal places.)
1. The number of units sold increases by 16%.
2....
Miller Company’s most recent contribution format income statement is shown below: Total Per Unit Sales (31,000...
Miller Company’s most recent contribution format income
statement is shown below:
Total
Per Unit
Sales (31,000 units)
$217,000
$7.00
Variable expenses
124,000
4.00
Contribution margin
93,000
$3.00
Fixed expenses
48,000
Net operating income
$ 45,000
Required:
Prepare a new contribution format income statement under each of
the following conditions (consider each case independently):
(Do not round intermediate calculations. Round your "Per
unit" answers to 2 decimal places.)
1. The number of units sold increases by 10%.
2. The selling...
Miller Company’s most recent contribution format income statement is shown below: Total Per Unit Sales (32,000...
Miller Company’s most recent contribution format income
statement is shown below:
Total
Per Unit
Sales
(32,000 units)
$320,000
$10.00
Variable
expenses
224,000
7.00
Contribution
margin
96,000
$3.00
Fixed
expenses
43,000
Net operating
income
$
53,000
1. The number of units sold increases by 19%.
2. The selling price decreases by $1.20 per unit, and the number
of units sold increases by 21%.
3. The selling price increases by $1.20 per unit, fixed expenses
increase by $8,000, and the number of...
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 (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...
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