Introduction To Managerial Accounting
8th Edition
ISBN: 9781259917066
Author: BREWER, Peter C., Garrison, Ray H., Noreen, Eric W.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 6, Problem 1E
The Effect of Cha noes ¡n Activity on Net Operating Income
Whirly Corporation's contribution format income statement for the most recent month is shown below
Required:
(Consider each case independently):
1. What would be the revised net operating income per month if the sales volume increases by 100 units?
2. What would be the revised net operating income per month if the sales volume decreases by 100 units?
3. What would be the revised net operating income per month if the sales volume is 9,000 units?
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Miller Company’s contribution format income statement for the most recent month is shown below:
Required:(Consider each case independently):1. 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 by 25%?3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%?4. What is the revised net operating income if the selling price per unit increases by 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by 10%?
1.
Prepare the company's contribution margin income statement for the month of April. Round all figures to the nearest dollar.
2.
Assume that passenger volume increases by
12%
in May. Which figures on the income statement would you expect to change, and by what percentage would they change? Which figures would remain the same as in April?
Huge Company’s traditional format income statement for the month of May was as follows:
Using the space provided below, please prepare an income statement for the month in contribution margin format
b. By how much would net income increase if sales increased by $30,000?
Chapter 6 Solutions
Introduction To Managerial Accounting
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