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Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (33,000 units) Variable expenses $ 198,000 99,000 $ 6.00 3.00 Contribution margin 99,000 $ 3.00 Fixed expenses 41,000 Net operating income $ 58,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 12%? 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 17%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 7%?

Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (33,000 units) Variable expenses $ 198,000 99,000 $ 6.00 3.00 Contribution margin 99,000 $ 3.00 Fixed expenses 41,000 Net operating income $ 58,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 12%? 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 17%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 7%?

Cornerstones of Cost Management (Cornerstones Series)
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
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Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (33,000 units) Variable expenses $ 198,000 99,000 $ 6.00 3.00 Contribution margin 99,000 $ 3.00 Fixed expenses 41,000 Net operating income $ 58,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 12%? 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 17%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 7%? 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 10%? 1. Net operating income 2. Net operating income <Prev 11 of 12 Next > e to search
Transcribed Image Text:Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (33,000 units) Variable expenses $ 198,000 99,000 $ 6.00 3.00 Contribution margin 99,000 $ 3.00 Fixed expenses 41,000 Net operating income $ 58,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 12%? 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 17%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 7%? 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 10%? 1. Net operating income 2. Net operating income <Prev 11 of 12 Next > e to search
Net operating income $. 58,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 12%? 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 17%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 7%? 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 10%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income < Prev 11 of 12 Next > o search
Transcribed Image Text:Net operating income $. 58,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 12%? 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 17%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 7%? 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 10%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income < Prev 11 of 12 Next > o search
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