Exercise 2-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO2-1, LO2-4] Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit $ Sales (45,000 units) Variable expenses Contribution margin $ 450,000 315,000 135,000 10.00 7.00 $ 3.00 Fixed expenses 44,000 Net operating income $ 91,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 16%? 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 16%? 3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 5%?
Exercise 2-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO2-1, LO2-4] Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit $ Sales (45,000 units) Variable expenses Contribution margin $ 450,000 315,000 135,000 10.00 7.00 $ 3.00 Fixed expenses 44,000 Net operating income $ 91,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 16%? 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 16%? 3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 5%?
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.2.2P
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