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Miller Company s contribution format income statement for the most recent month is shown below: Total Per Unit Sales ( 2 1 , 6 0

Miller Companys contribution format income statement for the most recent month is shown below:
Total Per Unit
Sales (21,600 units) TOTAL: $ 194,400 PRICE PER UNIT: $ 9.00
Variable expenses TOTAL : $116,640 PRICE PER UNIT 5.40
Contribution margin TOTAL : $77,760 PRICE PER UNIT $ 3.60
Fixed expenses $45,360
Net operating income $ 32,400
1. Assume the sales volume increases by 3,456 units:
A. What is the revised net operating income?
B. What is the percent increase in unit sales?
C. Using the most recent months degree of operating leverage, what is the percent increase in net operating income?
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 24%?
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 6%?
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 15%?

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