Item5

2.45points

eBookHint

Check my workCheck My Work button is now enabled

Item5

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

	Total	Per Unit
Sales (37,000 units)	$ 185,000	$ 5.00
Variable expenses	74,000	2.00
Contribution margin	111,000	$ 3.00
Fixed expenses	44,000
Net operating income	$ 67,000

Required:

(Consider each case independently):

1. What is the revised net operating income if unit sales increase by 18%?

2.What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 20%?

3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 5%?

4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 10%?