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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Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 30.00 19.00 $11.00 Sales (7,900 units) Variable expenses Contribution margin Fixed expenses Net operating income. Required: (Consider each case independently): Total $ 237,000 150, 100 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 86,900 55,200 $ 31,700 1. What would be the revised net operating income per month if the sales volume increases by 30 units? 2. What would be the revised net operating income per month if the sales volume decreases by 30 units? 3. What would be the revised net operating income per month if the sales volume is 6,900 units?
Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,400 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 236,800 140,600 96,200 54,300 $ 41,900 Per Unit $32.00 19.00 $13.00 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units? 3. What would be the revised net operating income per month if the sales volume is 6,400 units?
Miller Company's contribution format income statement for the most recent month is shown below: Sales (38,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 190,000 76,000 114,000 46,000 $ 68,000 Required: (Consider each case independently): 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income Per Unit $ 5.00 2.00 $ 3.00 1. What is the revised net operating income if unit sales increase by 14%? 2. What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of units sold increases by 21%? 3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 2%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 14%?
A company’s contribution approach income statement showed net operating incomeof $4,000, and fixed expenses of $10,000. How much contribution margin did thecompany earn?a. $29,000b. $15,000c. $19,000d. $14,000
Whirly Corporation's contribution format Income statement for the most recent month is shown below: Sales (8,400 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 260,400 168,998 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 55, 188 Per Unit $ 31.08 11.09 1. What would be the revised net operating Income per month of the sales volume Increases by 70 units? 2. What would be the revised net operating income per month if the sales volume decreases by 70 units? 3. What would be the revised net operating income per month if the sales volume is 7,400 units?
1. Pantok Manufacturing, most recent income statement follows: Total P208,000 144,000 Sales (8,000 units) Variable expenses.... Contribution margin.. Fixed expenses....... Net operating Income..... Per unit P 26.00 18.00 64,000 P 8.00 .56,000 ..P 8,000 Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): a. The sales volume increases by 50 units. b. The sales volume declines by 50 units. c. The sales volume is 7,000 units.
The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales $ 992,000 $ 49.60 Variable expenses 595,200 29.76 Contribution margin 396,800 19.84 Fixed expenses 318,800 15.94 Net operating income 78,000 3.90 Income taxes @ 40% 31,200 1.56 Net income $ 46,800 $ 2.34 The company had average operating assets of $492,000 during the year. Required: 1. Compute the company’s return on investment (ROI) for the period using the ROI formula stated in terms of margin and turnover. For each of the following questions, indicate whether the margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI figure. Consider each question separately, starting in each case from the data used to compute the original ROI in (1) above. 2. Using Lean Production, the company is able to reduce the average level of inventory by $93,000. (The…
Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,600 unita) Variable expenses Total $ 243,200 136, 800 Per Unit $32.00 18.00 Contribution nargin 106,400 $ 14.00 ried expenses 55,000 5 51,400 et operating Lncone Required: (Consider each case independently): 1 What would be the revised net operating income per month if the sales volume increases by 50 units? 2 What would be the revised net operating income per month if the sales volume decreases by 50 units? 3. What would be the revised net operating income per month if the sales volume is 6,600 units? 1. Revined net operating income 2. Revised net operating income 3. Revised net operating income
Miller Company's contribution format income statement for the most recent month is shown below: Per Unit $8.00 5.00 $1.00 Sales (39,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case Independently) Total $312,000 195,000 117,000 41,000 $76,000 1. What is the revised net operating income if unit sales increase by 18%3 2. What is the revised net operating income if the selling price decreases by $110 per unit and the number of units sold increases by 19%7 3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 2%7 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 10%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income
The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales $ 998,000 $ 49.90 Variable expenses 598,800 29.94 Contribution margin 399,200 19.96 Fixed expenses 321,200 16.06 Net operating income 78,000 3.90 Income taxes @ 40% 31,200 1.56 Net income $ 46,800 $ 2.34 The company had average operating assets of $508,000 during the year. Required: 1. Compute the company’s return on investment (ROI) for the period using the ROI formula stated in terms of margin and turnover. For each of the following questions, indicate whether the margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI figure. Consider each question separately, starting in each case from the data used to compute the original ROI in (1) above. 2. Using Lean Production, the company is able to reduce the average level of inventory by $109,000. (The…
Last year’s contribution format income statement for Huerra Company is given below: Total Unit Sales $ 1,002,000 $ 50.10 Variable expenses 601,200 30.06 Contribution margin 400,800 20.04 Fixed expenses 316,800 15.84 Net operating income 84,000 4.20 Income taxes @ 40% 33,600 1.68 Net income $ 50,400 $ 2.52 The company had average operating assets of $491,000 during the year. Required: Compute last year’s margin, turnover, and return on investment (ROI). For each of the following questions, indicate whether last year’s margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI. Consider each question separately. Using Lean Production, the company is able to reduce the average level of inventory by $100,000. The company achieves a cost savings of $10,000 per year by using less costly materials. The company purchases machinery and equipment that increase average operating assets by $125,000.…
Last year’s contribution format income statement for Huerra Company is given below: Total Unit Sales $ 1,002,000 $ 50.10 Variable expenses 601,200 30.06 Contribution margin 400,800 20.04 Fixed expenses 316,800 15.84 Net operating income 84,000 4.20 Income taxes @ 40% 33,600 1.68 Net income $ 50,400 $ 2.52 The company had average operating assets of $491,000 during the year. Required: Compute last year’s margin, turnover, and return on investment (ROI). For each of the following questions, indicate whether last year’s margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI. Consider each question separately. Using Lean Production, the company is able to reduce the average level of inventory by $100,000. The company achieves a cost savings of $10,000 per year by using less costly materials. The company purchases machinery and equipment that increase average operating assets by $125,000.…

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