Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Miller Company's contribution format income statement for the most recent month is shown below:
Per Unit
$ 8.00
5.00
$ 3.00
Sales (34,000 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 272,000
170,000
102,000
44,000
$ 58,000
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 13%?
2. What is the revised net operating income if the selling price decreases by $1.20 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 $1.20 per unit, fixed expenses
increase by $10,000, and the number of units sold decreases by 7%?
4. What is the revised net operating income if the selling price per unit increases by 10%, variable
expenses increase by 20 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
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Transcribed Image Text:Miller Company's contribution format income statement for the most recent month is shown below: Per Unit $ 8.00 5.00 $ 3.00 Sales (34,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 272,000 170,000 102,000 44,000 $ 58,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 13%? 2. What is the revised net operating income if the selling price decreases by $1.20 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 $1.20 per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 7%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 20 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
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