Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit
Question:
Miller Company’s contribution format income statement for the most recent month is shown below:
Total | Per Unit | |
---|---|---|
Sales (43,000 units) | $ 344,000 | $ 8.00 |
Variable expenses | 215,000 | 5.00 |
Contribution margin | 129,000 | $ 3.00 |
Fixed expenses | 44,000 | |
Net operating income | $ 85,000 |
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 $1.10 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 $1.10 per unit, fixed expenses increase by $6,000, 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 20 cents per unit, and the number of units sold decreases by 11%?
Answers in these
1. Net operating income =
2. net operating income=
3. Net operating income=
4. Net operating income=
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer