Miller Company's most recent income statement follows: Total Sales (20,000 units) Less: Variable expenses $440,000 Per Unit $22 260,000 13 Contribution margin 180,000 $9 Less: Fixed expenses 58,000 Net income $122,000 Consider each of the following cases independently. Required: 1. Prepare a new income statement if the sales volume increases by 20%, and the selling price decreases by $4.00. (Do not ro intermediate calculations. Round "Per Unit" answers to 2 decimal places.)
Miller Company's most recent income statement follows: Total Sales (20,000 units) Less: Variable expenses $440,000 Per Unit $22 260,000 13 Contribution margin 180,000 $9 Less: Fixed expenses 58,000 Net income $122,000 Consider each of the following cases independently. Required: 1. Prepare a new income statement if the sales volume increases by 20%, and the selling price decreases by $4.00. (Do not ro intermediate calculations. Round "Per Unit" answers to 2 decimal places.)
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 20MC: Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month...
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Transcribed Image Text::47
Miller Company's most recent income statement follows:
Total
Per Unit
Sales (20,000 units)
Less: Variable expenses
$440,000
$22
260,000
13
Contribution margin
180,000
$9
Less: Fixed expenses
58,000
Net income
$122,000
Consider each of the following cases independently.
Required:
1. Prepare a new income statement if the sales volume increases by 20%, and the selling price decreases by $4.00. (Do not round
intermediate calculations. Round "Per Unit" answers to 2 decimal places.)
Total
Per Unit
Sales
Transcribed Image Text:Saved
2. Prepare a new income statement if the selling price decreases by $1.0 per unit, and the sales volume increases by 15%. (Do not
round intermediate calculations. Round "Per Unit" answers to 2 decimal places.)
Total
Per Unit
Sales
4
_
3. Prepare a new income statement if the selling price increases by $2.5 per unit, fixed expenses increase by $9,000 and the sales
volume decreases by 5%. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.)
Total
Per Unit
Sales
f 12
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