Question

Saved - 6 - Homework Help Miller Company's contribution format income statement for the most recent month is shown below: Sales (31,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 186.000 93,000 93,000 46,000 $ 47,000 Per Unit $6.00 3.00 $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 $1.10 per unit and the number of units sold increases by 22%? 3. What is the revised net operating income if the selling price increases by $110 per unit, fixed expenses increase by $10,000, 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 10%, variable expenses increase by 40 cents per unit, and the number of units sold decreases by 12%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income $ $ $ $ 63,740 139,318 41,203 24,928

Answer 1

Sales Units 31000 Sales 186000 Variable Expneses 93000 Contribution Margin 93000 Fixed Cost 46,000 Net Operating income 47,000 Net Operatting income = ( Selling Price - Variable cost)* Units) - Fixed Expneses Answers Revised Net operating income If sales are increased by 18% Revised Net operating income (3))*31000*1.18-46000 63,740 Revised Net operating income If selling Price Decreased by $1.10 and Number of Units Increased by 22% Revised Net operating income (3-1.10)*31000*1.22-46000 25,858 Selling price increased by 1.10, Fixed cost Increased by 10000 and units 3 decreased by 3% Revised Net operating income (3+1.10)*31000*0.97-56000 67,287 Selling price increased by 10% Variable cost by40 Cents ,units decreased by 12% Revised Net operating income (6.6-3.40)*31000*0.88-46000 41,296