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Miller Company’s contribution format income statement for the most recent month is shown below:     Total Per Unit Sales (36,000 units) $ 180,000 $ 5.00 Variable expenses 72,000 2.00 Contribution margin 108,000 $ 3.00 Fixed expenses 43,000   Net operating income $ 65,000     Required: (Consider each case independently):   1. What is the revised net operating income if unit sales increase by 17%? 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 24%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, 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 13%?

Miller Company’s contribution format income statement for the most recent month is shown below:     Total Per Unit Sales (36,000 units) $ 180,000 $ 5.00 Variable expenses 72,000 2.00 Contribution margin 108,000 $ 3.00 Fixed expenses 43,000   Net operating income $ 65,000     Required: (Consider each case independently):   1. What is the revised net operating income if unit sales increase by 17%? 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 24%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, 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 13%?

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
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
Sales (36,000 units) $ 180,000 $ 5.00
Variable expenses 72,000 2.00
Contribution margin 108,000 $ 3.00
Fixed expenses 43,000  
Net operating income $ 65,000  

 

Required:

(Consider each case independently):

 

1. What is the revised net operating income if unit sales increase by 17%?

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 24%?

3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, 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 13%?

 

(ONLY QUESTION 3 & 4 NEEDS AN ANSWER.)

 
Miller Company's contribution format income statement for the most recent month is shown below: Per Unit $5.00 2.00 $ 3.00 Sales (36,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): Total $ 180,000 72,000 108,000 43,000 $ 65,000 1. What is the revised net operating income if unit sales increase by 17%? 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 24%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, 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 13%?
Transcribed Image Text:Miller Company's contribution format income statement for the most recent month is shown below: Per Unit $5.00 2.00 $ 3.00 Sales (36,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): Total $ 180,000 72,000 108,000 43,000 $ 65,000 1. What is the revised net operating income if unit sales increase by 17%? 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 24%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, 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 13%?
Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 17%? 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 24%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, 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 13%? Answer is not complete. $ 83,360 $ 32,888 ✔ $ 144,156 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income
Transcribed Image Text:Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 17%? 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 24%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, 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 13%? Answer is not complete. $ 83,360 $ 32,888 ✔ $ 144,156 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income
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