Homework Answers
Answer-1)-
| ULLER COMPANY | ||
| OPERATING INCOME | ||
| ALTERNATIVE 1 | ||
| Particulars | Amount | |
| $ | ||
| Sales | ($15 per unit*1.15)*20000 units | 345000 |
| Less:- Variable cost | 20000 units*$9 per unit | 180000 |
| Contribution | 165000 | |
| Less:- Fixed costs | 70000 | |
| Net operating income | 95000 | |
2)-
| ULLER COMPANY | ||
| OPERATING INCOME | ||
| ALTERNATIVE 2 | ||
| Particulars | Amount | |
| $ | ||
| Sales | $15 per unit*20000 units | 300000 |
| Less:- Variable cost | ($300000*50%) | 150000 |
| Contribution | 150000 | |
| Less:- Fixed costs | 70000 | |
| Net operating income | 80000 | |
3)-
| ULLER COMPANY | ||
| OPERATING INCOME | ||
| ALTERNATIVE 3 | ||
| Particulars | Amount | |
| $ | ||
| Sales | $15 per unit*20000 units | 300000 |
| Less:- Variable cost | 20000 units*$9 per unit | 180000 |
| Contribution | 120000 | |
| Less:- Fixed costs | ($70000-$20000) | 50000 |
| Net operating income | 70000 | |
Alternative 1 will produce a higher profit (ie- Increase selling price by 15%).
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- Calculate pro different alternatives. (LO4) AP Uller Company's most recent contribution margin format income statement...
LUDO m Uller Company's most recent contribution margin format income statement follows: Per Unit $15.00 9.00...
LUDO m Uller Company's most recent contribution margin format income statement follows: Per Unit $15.00 9.00 Sales (20,000 units) Less: Variable expenses Contribution margin Less: Fixed expenses Profit Total $300,000 180,000 120,000 70,000 $ 50,000 $ 6.00 management is considering the following independent action to increase profit: increase selling price by 15% with no change in total variable costs. 2 Reduce variable costs to 50% of sales. Reduce fixed costs by $20,000. Instructions Calculate the profit to be earned to...
E20-9 Uller Company's most recent contribution margin format income statement follows: Sales (20,000 units) Less: Variable...
E20-9 Uller Company's most recent contribution margin format income statement follows: Sales (20,000 units) Less: Variable expenses Contribution margin Less: Fixed expenses I Profit Total $300,000 180,000 120,000 70,000 $50,000 Per Unit $15.00 9.00 $ 6.00 Management is considering the following independent action to increase profit: 1. Increase selling price by 15% with no change in total variable costs. 2. Reduce variable costs to 50% of sales. 3. Reduce fixed costs by $20,000. Instructions Calculate the profit to be earned...
070-9 Uller Company's most recent contribution margin format income statement follows: Total $300,000 180,000 120,000 70,000...
070-9 Uller Company's most recent contribution margin format income statement follows: Total $300,000 180,000 120,000 70,000 $ 50,000 Per Unit $15.00 9.00 $ 6.00 Sales (20,000 units) Less: Variable expenses Contribution margin Less: Fixed expenses Profit Management is considering the following independent action to increase profit: 1. Increase selling price by 15% with no change in total variable costs. 2. Reduce variable costs to 50% of sales. 3. Reduce fixed costs by $20,000. Instructions Calculate the profit to be earned...
E20-9 Uller Company's most recent contribution margin format income statement follows: Total arom wol slot 10...
E20-9 Uller Company's most recent contribution margin format income statement follows: Total arom wol slot 10 Per Unit Sales (20,000 units) $300,000 $15.00 Less: Variable expenses 180,000 9.00 Contribution margin 120,000 $ 6.00 Less: Fixed expenses 70,000 Profit $50,000 management is considering the following independent action to increase profit: Increase selling price by 15% with no change in total variable costs. 2. Reduce variable costs to 50% of sales. 3. Reduce fixed costs by $20,000. Instructions Calculate the profit to...
Miller Company's most recent contribution format income statement is shown below: Total 1 $378,000 252,000 126,000...
Miller Company's most recent contribution format income statement is shown below: Total 1 $378,000 252,000 126,000 Per Unit $9.00 1116.00 Sales (42,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 47,000 79,000 3. The selling price increases by $1.20 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 6%. Miller Company Contribution Income Statement Total Sales 0 $ 0.00 Variable expenses Contribution margin Fixed expenses Net operating income 01 4. The selling...
Miller Company's contribution format income statement for the most recent month is shown below: Total $...
Miller Company's contribution format income statement for the most recent month is shown below: Total $ 351,000 234,000 Sales (39,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Per Unit $ 9.00 6.00 $ 3.00 117,000 41,000 $ 76,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 18%? 2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number...
Miller Company's contribution format income statement for the most recent month is shown below: Sales (32,000...
Miller Company's contribution format income statement for the most recent month is shown below: Sales (32,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 288,000 192,000 96,000 50,000 $ 46,000 Per Unit $ 9.00 6.00 $ 3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%? 2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number...
Miller Company's contribution format income statement for the most recent month is shown below: Sales (44,000...
Miller Company's contribution format income statement for the most recent month is shown below: Sales (44,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 396,000 264,000 132,000 46,000 $ 86,000 Per Unit $ 9.00 6.00 $ 3.00 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 $1.40 per unit and the number...
Miller Company's contribution format income statement for the most recent month is shown below. Sales (37,000...
Miller Company's contribution format income statement for the most recent month is shown below. Sales (37,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 333,000 222,000 111,000 46,000 $ 65,000 Per Unit $9.00 6.00 $ 3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 18%? 2. What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of...
Problem 2-20 Points: The CGC Computer Products most recent contribution margin income statement is shown on...
Problem 2-20 Points: The CGC Computer Products most recent contribution margin income statement is shown on the worksheet. In each of the following scenarios, calculate the values indicated. (CALCULATE ALL CHANGES FROM THE BEGINNING SCENARO OF NUMBERS-hint: it may be easier to copy the base income statement and paste to all other scenarios) A. The breakeven point in dollars and units. B. The sales volume increases by 30% and the price decreases by $0.50 per unit. c. The selling price...
LUDO m Uller Company's most recent contribution margin format income statement follows: Per Unit $15.00 9.00 Sales (20,000 units) Less: Variable expenses Contribution margin Less: Fixed expenses Profit Total $300,000 180,000 120,000 70,000 $ 50,000 $ 6.00 management is considering the following independent action to increase profit: increase selling price by 15% with no change in total variable costs. 2 Reduce variable costs to 50% of sales. Reduce fixed costs by $20,000. Instructions Calculate the profit to be earned to...
E20-9 Uller Company's most recent contribution margin format income statement follows: Sales (20,000 units) Less: Variable expenses Contribution margin Less: Fixed expenses I Profit Total $300,000 180,000 120,000 70,000 $50,000 Per Unit $15.00 9.00 $ 6.00 Management is considering the following independent action to increase profit: 1. Increase selling price by 15% with no change in total variable costs. 2. Reduce variable costs to 50% of sales. 3. Reduce fixed costs by $20,000. Instructions Calculate the profit to be earned...
070-9 Uller Company's most recent contribution margin format income statement follows: Total $300,000 180,000 120,000 70,000 $ 50,000 Per Unit $15.00 9.00 $ 6.00 Sales (20,000 units) Less: Variable expenses Contribution margin Less: Fixed expenses Profit Management is considering the following independent action to increase profit: 1. Increase selling price by 15% with no change in total variable costs. 2. Reduce variable costs to 50% of sales. 3. Reduce fixed costs by $20,000. Instructions Calculate the profit to be earned...
E20-9 Uller Company's most recent contribution margin format income statement follows: Total arom wol slot 10 Per Unit Sales (20,000 units) $300,000 $15.00 Less: Variable expenses 180,000 9.00 Contribution margin 120,000 $ 6.00 Less: Fixed expenses 70,000 Profit $50,000 management is considering the following independent action to increase profit: Increase selling price by 15% with no change in total variable costs. 2. Reduce variable costs to 50% of sales. 3. Reduce fixed costs by $20,000. Instructions Calculate the profit to...
Miller Company's most recent contribution format income statement is shown below: Total 1 $378,000 252,000 126,000 Per Unit $9.00 1116.00 Sales (42,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 47,000 79,000 3. The selling price increases by $1.20 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 6%. Miller Company Contribution Income Statement Total Sales 0 $ 0.00 Variable expenses Contribution margin Fixed expenses Net operating income 01 4. The selling...
Miller Company's contribution format income statement for the most recent month is shown below: Total $ 351,000 234,000 Sales (39,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Per Unit $ 9.00 6.00 $ 3.00 117,000 41,000 $ 76,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 18%? 2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number...
Miller Company's contribution format income statement for the most recent month is shown below: Sales (32,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 288,000 192,000 96,000 50,000 $ 46,000 Per Unit $ 9.00 6.00 $ 3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%? 2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number...
Miller Company's contribution format income statement for the most recent month is shown below: Sales (44,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 396,000 264,000 132,000 46,000 $ 86,000 Per Unit $ 9.00 6.00 $ 3.00 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 $1.40 per unit and the number...
Miller Company's contribution format income statement for the most recent month is shown below. Sales (37,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 333,000 222,000 111,000 46,000 $ 65,000 Per Unit $9.00 6.00 $ 3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 18%? 2. What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of...
Problem 2-20 Points: The CGC Computer Products most recent contribution margin income statement is shown on the worksheet. In each of the following scenarios, calculate the values indicated. (CALCULATE ALL CHANGES FROM THE BEGINNING SCENARO OF NUMBERS-hint: it may be easier to copy the base income statement and paste to all other scenarios) A. The breakeven point in dollars and units. B. The sales volume increases by 30% and the price decreases by $0.50 per unit. c. The selling price...
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