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EXERCISE 3-13 Using a Contribution Format Income Statement [LO 3-1, LO 3-4 Miller Company's most recent contribution format income statement is shown below: Total Sales
EXERCISE 3-13 Using a Contribution Format Income Statement [LO 3-1, LO 3-4 Miller Company's most recent contribution format income statement is shown below: Total Sales (20,000 units) Variable expenses Contribution margin Fixed expenses... Net operating Income. $300,000 180,000 120.000 70,000 $ 50,000 Per Unit $15.00 9.00 $ 2.00 Required: Prepare a new contribution format income statement under each of the following conditions (consider 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 25%. 3. The selling price increases by $1.50 per unit, foed expenses increase by $20,000, and the number of units sold decreases by 4. The selling price increases by 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by 10%
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