ller Company's contribution format income statement for the most recent month is shown below: Total $ 297,000 198,000 Per Unit $9.00 6.00 $ 3.00 Sales (33,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 99,000 40,000 $ 59,000 equired: onsider each case independently): What is the revised net operating income if unit sales increase by 13%? What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by %? What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $10,000, and number of units sold decreases by 5%? What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per it, and the number of units sold decreases by 13%? Net operating income Net operating income Net operating income Net operating income

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4CE: Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at...
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Miller Company's contribution format income statement for the most recent month is shown below:
Total
Per Unit
$ 297,000 $9.00
198,000
6.00
99,000 $ 3.00
Sales (33,000 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
40,000
$ 59,000
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 of units sold increases by
21%?
3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $10,000, and
the number of units sold decreases by 5%?
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 decreases by 13%?
1. Net operating income
2. Net operating income
3. Net operating income
4. Net operating income
X
Transcribed Image Text:Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit $ 297,000 $9.00 198,000 6.00 99,000 $ 3.00 Sales (33,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 40,000 $ 59,000 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 of units sold increases by 21%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 5%? 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 decreases by 13%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income X
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