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Item 1

Miller Companys contribution format income statement for the most recent month is shown below:

	Total	Per Unit
Sales (32,000 units)	$ 192,000	$ 6.00
Variable expenses	96,000	3.00
Contribution margin	96,000	$ 3.00
Fixed expenses	42,000
Net operating income	$ 54,000

Required:

(Consider each case independently):

1. What is the revised net operating income if unit sales increase by 13%?

2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 18%?

3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 3%?

4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 11%?

1. Net operating income
2. Net operating income
3. Net operating income
4. Net operating income