Miller Company's contribution format income statement for the most recent month is shown below: Total $ 333,000 222,000 111,000 48,000. $ 63,000 Sales (37,000 units) Variable expenses Per Unit $ 9.00 6.00 Contribution margin $ 3.00 Fixed expenses Net operating income Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 19%? 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 23%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $8,000, 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 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 7%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income
Miller Company's contribution format income statement for the most recent month is shown below: Total $ 333,000 222,000 111,000 48,000. $ 63,000 Sales (37,000 units) Variable expenses Per Unit $ 9.00 6.00 Contribution margin $ 3.00 Fixed expenses Net operating income Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 19%? 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 23%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $8,000, 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 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 7%? 1. Net operating income 2. Net operating income 3. Net operating income 4. 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 2CE
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Requirements
1 |
Net Operating Income |
$84,090 |
2 |
Net Operating Income |
$29,367 |
3 |
Net Operating Income |
$93,554 |
4 |
Net Operating Income |
$110,286 |
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