Question

operating 2. 3 Compute the break-even point for the company Ir sales increase by $100.000 a month, by how much would you expect net oper to increase? What are your assumptions? EXERCISE 4-13 Using a Contribution Format Income Statement (L01, L04) Miller Company's most recent contribution format income statement is shown below Sales (20,000 units) Variable expenses Contribution margin.. Fixed expenses. Net operating income.. Total $300,000 180,000 120,000 70,000 $ 50,000 Per Unit $15.00 9.00 $ 6.00 Required: Prepare a new contribution format income statement under each of the following conditions (con sider each case independently): 1. The number of units sold increases by 15% 2. The selling price decreases by $1.50 per unit, and the number of units sold increases by D 3. 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. The selling price increases by 12%, variable expenses increase by 60 cents per unit, and is number of units sold decreases by 10%. EXERCISE 4-14 Break-Fyen and Tarmot Boi

pls calculate Exercise 4-13

Answer 1

1. The number of unit sold increases by 15%
Particulars		Working	Amount	Per unit
			$
Sales (in units) ( 20000+ 15% of 20000)	A	23000*15	3,45,000	15
Variable expenses	B	23000*9	2,07,000	9
Contribution margin	C=A-B		1,38,000	6
Fixed Expenses	D		70,000
Net operating income	E=C-D		68,000
2. The Selling price decreases by $1.50 per unit, and the number of units sold increases by 25%
Particulars		Working	Amount	Per unit
			$
Sales (in units) ( 20000+ 25% of 20000)	A	(20000+25% of 20000) * ($15-$1.50)	3,37,500	13.5
Variable expenses	B	25000*9	2,25,000	9
Contribution margin	C=A-B		1,12,500	4.5
Fixed Expenses	D		70,000
Net operating income	E=C-D		42,500
3. The Selling price increases by $1.50 per unit, fixed expenses increases by $ 20000 and the number of units sold decreases by 5%
Particulars		Working	Amount	Per unit
			$
Sales (in units) ( 20000-5% of 20000)	A	(20000-5% of 20000) * ($15+$1.50)	3,13,500	16.5
Variable expenses	B	19000*9	1,71,000	9
Contribution margin	C=A-B		1,42,500	7.5
Fixed Expenses	D	70000+20000	90,000
Net operating income	E=C-D		52,500
4. The Selling price increases by 12%, variable expenses increases by 60 cents per unit and the number of units sold decreases by 10%
Particulars		Working	Amount	Per unit
			$
Sales (in units) ( 20000-10% of 20000)	A	(20000-10% of 20000) * ($15+12% of $ 15)	3,02,400	16.8
Variable expenses	B	18000* (9+0.60)	1,72,800	9.6
Contribution margin	C=A-B		1,29,600	7.2
Fixed Expenses	D		70,000
Net operating income	E=C-D		59,600
Please do upvote if you found the answer useful.
Feel free to reach in the comment section in case of any clarification or queries.