Miller Company's contribution format income statement for the most recent month is shown below:Per Unit$ 6.003.00$ 3.00Sales (37,000 units)Variable expensesContribution marginFixed expensesNet operating incomeRequired:(Consider each case independently):Total$ 222,000111,0001. Net operating income2. Net operating income.3. Net operating income4. Net operating income111,00040,000$ 71,0001. 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 by21%?3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $7,000, and thenumber of units sold decreases by 7%?4. What is the revised net operating income if the selling price per unit increases by 20 %, variable expenses increase by 20 cents perunit, and the number of units sold decreases by 6%?

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Q1: A company sells 280,000 units annually, at a price of (65 $/unit). The company wanted to explore the possibility of increasing its profits, so it decided to spend more (20%) for advertising. On the other hand, product's price will have reduced by one dollars, if the variable costs of producing are ($19) per unit, the current annual costs of labor and maintenance constitute (70%) of the fixed costs, and net profit is ($450,000), how much must the company sell in order to double its profit according to the new improvements?
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Sales revenue from product X is $9,000, variable costs are $6,000, and allocated fixed costs are $4,500. If you drop product X in the short term, profit will: decrease by $1,500 O decrease by $5,250 increase by $3,000 O increase by $1,500 decrease by $3,000
Required information [The following information applies to the questions displayed below.] Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 46,000 units of each product. Sales and costs for each product follow. Product 0 $ 800,400 160,080 640,320 512,320 128,000 44,800 Product T $ 800,400 640,320 Sales Variable costs Contribution margin 160,080 32,080 128,000 44,800 $ 83,200 Fixed costs Income before taxes Income taxes (35% rate) Net income $ 83, 200
Cullumber Company is considering two alternatives. Alternative A will have sales of $158,500 and costs of $100,100. Alternative B will have sales of $180,900 and costs of $133,200. Compare alternative A with alternative B showing incremental revenues, costs, and net income. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Revenues Costs Net income $ $ Alternative A $ $ Alternative B $ $ Net Income Increase (Decrease)
REQUIRED Answer each of the following questions independently. As far as possible use the expanded contribution margin model to present your answers. Calculate the total Contribution Margin and Operating Profit (Loss) if all 30 000 pallets are Sold. .calculate the margin of safety (as a percentage) for 2022 Use the contribution margin ratio to calculate the sales value required to achieve an operating profit of R6 000 000. Suppose an additional R300 000 is spent on advertising in order to increase the sales by 3 000 Calculate the number of pallets that need to be produced and sold to break even. Suppose the management team of…
Question Part Score If it holds the sales price constant and makes the suggested changes, how many units of product will Wildhorse have to sell to make the same operating Income before taxes as last year? Required sales units If Wildhorse wishes to maintain the same contribution margin ratio, what selling price per unit of product must it charge next year to cover the increased materials costs? (Round answer to 2 decimal places, e.g. 15.25) Selling price per unit $
Variable costs as a percentage of sales for Lemon Inc. are 64%, current sales are $691,000, and fixed costs are $180,000. How much will operating income change if sales increase by $41,800?
What is the term used to describe financial data comparisons conducted inside a company?
please answer 4a,b,c and 5 only. 4-a. What will be the new breakeven point if the additional $213,280 is spent on advertising? 4-b. Prepare a contribution income statement at the new breakeven point. 4-c. What is the percentage change in both fixed costs and in the breakeven point? 5. If the additional $213,280 is spent for advertising in the next year, what is the sales level (in units) needed to equal the current year’s operating profit at 60,000 units
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