50.1K

Verified Solution

Link Copied!

Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (44,000 units) $ 352,000 $ 8.00 Variable expenses 220,000 5.00 Contribution margin 132,000 $ 3.00 Fixed expenses 44,000 Net operating income $ 88,000 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 $1.30 per unit and the number of units sold increases by 25%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $5,000, and the number of units sold decreases by 8%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 11%?

Miller Company's contribution format income statement for the most recent month is shown below: 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 $1.30 per unit and the number of units sold increases by 25% ? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $5,000, and the number of units sold decreases by 8% ? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 11%? Miller Company's contribution format income statement for the most recent month is shown below: 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 $1.30 per unit and the number of units sold increases by 25% ? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $5,000, and the number of units sold decreases by 8% ? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 11%

Answer & Explanation Solved by verified expert

See Answer