Ask Question
8 February, 13:54

Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (20,000 units) $ 300,000 $ 15.00 Variable expenses 180,000 9.00 Contribution margin 120,000 $ 6.00 Fixed expenses 70,000 Net operating income $ 50,000 Required: (Consider each case independently) : 1. What is the revised net operating income if unit sales increase by 15%? 2. What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 25%? 3. 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%? 4. What is the revised net operating income if the selling price per unit increases by 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by 10%?

+3
Answers (1)
  1. 8 February, 16:16
    0
    Answers are 1. $95.000 2. $42.500 3. $ 50.000 4. $59.600

    Explanation:

    In each case you have to replace the data with the given information

    1 If unit sales increase 15%

    Units price Total

    Revenue 20,000.00 17.25 345,000.00

    Variable Man 20,000.00 9.00 (180,000.00)

    Contribution margin 20,000.00 8.25 165,000.00

    Fixed expenses 20,000.00 3.50 (70,000.00)

    Net income 95,000.00

    2 If price decreases by $1.5 and units sold increases by 25%

    Units price Total

    Revenue 25,000.00 13.50 337,500.00

    Variable Man 25,000.00 9.00 (225,000.00)

    Contribution margin 25,000.00 4.50 112,500.00

    Fixed expenses 25,000.00 2.80 (70,000.00)

    Net income 42,500.00

    3 If price increases by $1.5 and fixed expenses by $20.000

    Units price Total

    Revenue 20,000.00 16.50 330,000.00

    Variable Man 20,000.00 9.00 (180,000.00)

    Contribution margin 20,000.00 7.50 150,000.00

    Fixed expenses 20,000.00 5.00 (100,000.00)

    Net income 50,000.00

    4 Units price Total

    Revenue 18,000.00 16.80 302,400.00

    Variable Man 18,000.00 9.60 (172,800.00)

    Contribution margin 18,000.00 7.20 129,600.00

    Fixed expenses 18,000.00 3.89 (70,000.00)

    Net income 59,600.00
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (20,000 units) $ ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers