Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (41,000 units)
Question:
Miller Company’s contribution format income statement for the most recent month is shown below:
| Total | | Per Unit | |||
Sales (41,000 units) | $ | 287,000 | | $ | 7.00 | |
Variable expenses | | 164,000 | | | 4.00 | |
Contribution margin | | 123,000 | | $ | 3.00 | |
Fixed expenses | | 42,000 | | | | |
Net operating income | $ | 81,000 | | | | |
|
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 $1.40 per unit and the number of units sold increased by 18%?
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 decreased by 4%?
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 decreased by 6%?
1. | Net operating income |
2. | Net operating income |
3. | Net operating income |
4. | Net operating income |
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer