MANAGERIAL ACCOUNTING (CUSTOM LL)
17th Edition
ISBN: 9781264294633
Author: Garrison
Publisher: MCG
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Textbook Question
Chapter 5, Problem 13E
EXERCISE 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs LOS-1, LO5-4
Miller Company’s contribution format income statement for the most recent month is shown below:
Total Per Unit
Required:
(Consider each case independently):
- What is the revised net operating income if unit sales increase by 15%?
- What is the revised net operating income if the setting price decreases by $1.50 per unit and the number of units sold increases by 25%?
- What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%?
- What is the revised net operating income if the setting price per unit increases by 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by 10%?
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Question 2
The following monthly data in contribution format are available for the Ross Company and its only product.
Product SD:
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$
$
$
$
$
381,600
304.800
76,800
34,500
42,300
Per Unit
$
5
159
127
32
The company produced and sold 2,400 units during the month and had no beginning or ending inventories.
a) What is the current operating leverage?
b) Projections indicate that the market will worsen by 15% next month. What is the projected net operating
income given this increase?
PLS ANSWER AND SHOW SOLUTION
#10
The following monthly data are available for Tugg, Inc. which produces only one product: Selling price per unit, P42; Unit variable expenses, P14; Total fixed expenses, P70,000; Actual sales for the month of June, 4,000 units. How much is the margin of safety for the company for June?
Question 3
The following monthly data in contribution format are available for the Timor Company and its only product.
Product SD:
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$
$
$
$
$
227,500
162.500
65,000
45.000
20,000
Per Unit
$
$
$
91
65
26
The company produced and sold 2,500 units during the month and had no beginning or ending inventories.
a) What is the current margin of safety?
b) Management is concerned about having the funds to pay dividends next quarter. They believe net
operating income of $35,000 will be sufficient. How much sales revenue is necessary to achieve this target
profit?
Chapter 5 Solutions
MANAGERIAL ACCOUNTING (CUSTOM LL)
Ch. 5.A - EXERCISE 5A-1 High-Low Method LO5-10 The Cheyenne...Ch. 5.A - EXERCISE 5A-2 Least-Squares Regression LO5-11...Ch. 5.A - EXERCISE 5A-3 Cost Behavior; High-Low Method...Ch. 5.A - Prob. 4ECh. 5.A - EXERCISE 5A-5 Least-Squares Regression LO5-11...Ch. 5.A - Prob. 6PCh. 5.A - Problem 5A-7 Cost Behavior; High-Low Method;...Ch. 5.A - Problem 5A-8 High-Low Method; Predicting Cost...Ch. 5.A - Prob. 9PCh. 5.A - Prob. 10P
Ch. 5.A - Case 5A-11 Mixed Cost Analysis and the Relevant...Ch. 5.A - CASE 5A-12 Analysis of Mixed Costs in a Pricing...Ch. 5 - Prob. 1QCh. 5 - Often the most direct route to a business decision...Ch. 5 - Prob. 3QCh. 5 - What is the meaning of operating leverage?Ch. 5 - What is the meaning of break-even point?Ch. 5 - 5-6 In response to a request from your immediate...Ch. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - Prob. 1AECh. 5 - Prob. 2AECh. 5 - Prob. 3AECh. 5 - Prob. 4AECh. 5 - Prob. 5AECh. 5 - Prob. 1F15Ch. 5 - Prob. 2F15Ch. 5 - Prob. 3F15Ch. 5 - Prob. 4F15Ch. 5 - Prob. 5F15Ch. 5 - Prob. 6F15Ch. 5 - Prob. 7F15Ch. 5 - Prob. 8F15Ch. 5 - Prob. 9F15Ch. 5 - Prob. 10F15Ch. 5 - Prob. 11F15Ch. 5 - Prob. 12F15Ch. 5 - Prob. 13F15Ch. 5 - Prob. 14F15Ch. 5 - Prob. 15F15Ch. 5 - Prob. 1ECh. 5 - Prob. 2ECh. 5 - Prob. 3ECh. 5 - Prob. 4ECh. 5 - Prob. 5ECh. 5 - Prob. 6ECh. 5 - Prob. 7ECh. 5 - Prob. 8ECh. 5 - Prob. 9ECh. 5 - EXERCISE 5-10 Multiproduct Break-Even Analysis...Ch. 5 - Prob. 11ECh. 5 - EXERCISE 5-12 Multiproduct Break-Even Analysis...Ch. 5 - EXERCISE 5-13 Changes in Selling Price, Sales...Ch. 5 - Prob. 14ECh. 5 - Prob. 15ECh. 5 - Prob. 16ECh. 5 - Prob. 17ECh. 5 - Prob. 18ECh. 5 - Prob. 19PCh. 5 - PROBLEM 5-20 CVP Applications: Break-Even...Ch. 5 - PROBLEM 5-21 Sales Mix; Multiproduct Break-Even...Ch. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 -
PROBLEM 5-26 CVP Applications; Break-Even...Ch. 5 - Prob. 27PCh. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Prob. 30PCh. 5 -
PROBLEM 5-31 Interpretive Questions on the CVP...Ch. 5 - Prob. 32C
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