Question: Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (32,000 units) $ 160,000 $ 5.00 Variable
Miller Companys 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 42,000 Net operating income $ 54,000 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 $1.50 per unit and the number of units sold increases by 20%? 3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 3%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 12%?
Exercise 5-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO5-1, LO5-4] Miller Company's contribution format income statement for the most recent month is shown below: Required: Consider each case independently): 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 $1.50 per unit and the number of units sold increases by 20%? 3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $10,000, and he number of units sold decreases by 3% ? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 12%
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