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Supp Probs CVP_ Effect on NI and BEpt of changes-1

Supp Probs CVP_ Effect on NI and BEpt of changes-1 - the...

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ACCT2460 Supplementary Problems re CVP - Chapter 6 Problem 1: Effects of changes in SP, VC/unit, TFC, on NI Porter Company’s most recent CM format income statement is shown below: Total Per unit Sales (30,000 units) $150,000 $5 Variable expenses 90,000 3 Contribution margin 60,000 2 Fixed expenses 50,000 Net Income $ 10,000 Prepare a new CM format income statement for each of the following changes (revert back to the original situation after each item) 1. The number of units sold (volume) increases by 15% 2. VC decreases by $.50 and TFC increases by $14,000, 3. The SP decreases by $0.50 and the # of units sold increases by 20% 4. The VC/unit increases by $0.20 per unit, the selling price decreases by 12%, and
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Unformatted text preview: the number of units sold increases by 10% Case 1 Total Case 2 Total Case 3 Total Case 4 Total Problem 2: Effect of changes in various CVP parameters on the BE pt. For each of the following changes, indicate whether the BE point goes up, down, no change, or net effect of change is uncertain because not enough specific info is given. 1. SP goes from $30 to $27. 2. VC/unit go from $12 to $15 3. TFC goes down by $40,000 4. The volume goes down by 5,000 units 5. Due to paying sales people a commission rather than a salary, TFC went down by $21,000 and VC/unit were increased by $6....
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