can someone can hele me to do 7 and 8 thanks!!!! 7. Miller Company\'s last month

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can someone can hele me to do 7 and 8 thanks!!!!

7. Miller Company's last month below: contribution format income statement is shown Total $450,000 $180,000 S270,000 $9 unit Sales Variable Expense Contribution Margin Fixed Expensecome $50,000 $220.000 $50,000 Net operating The president believes that a 15% increase in unit selling price, combined with $10, 000 decrease in the monthly advertising budget, will result in a 25% increase in units sold monthly. If the president is right, what will be the company's monthly net operating income or loss? A. $127,500 loss B. $201,875 loss C. $211,875 income D. $191,875 income E. None of the above Frank Corporation manufacturers a single product that has a selling price of 20.00 per unit. Fixed expenses total $45,000 per year, and the company must sell 5,000 units to break even. If the company has a target profit of $13.500, sales im 8. units must be: A. 6,000 B. 5,750 C. 6,500 D. 7,925 E. None of the above

Explanation / Answer

7) Unit sale = 270000/9 = 30000 Units

Unit selling price = 450000/30000 = 15 per unit

New unit selling price = 15*115% = 17.25

New unit sale = 30000*1.25 = 37500

Variables cost per unit = 180000/30000 = 6 per unit

New operting income :

So answer is c) $211875 Income

8) Contribution margin per unit = 45000/5000 = 9 per unit

Unit must sell on target profit = (45000+13500)/9 = 6500 Units

So answer is c) 6500

Sales (17.25*37500) 646875 Variable cost (37500*6) 225000 Contribution margin 421875 Fixed cost (220000-10000) 210000 Net operating income 211875

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