Question
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (37,000 units) $ 370,000 $ 10.00 Variable
Miller Companys contribution format income statement for the most recent month is shown below:
Total | Per Unit | |||||
Sales (37,000 units) | $ | 370,000 | $ | 10.00 | ||
Variable expenses | 259,000 | 7.00 | ||||
Contribution margin | 111,000 | $ | 3.00 | |||
Fixed expenses | 47,000 | |||||
Net operating income | $ | 64,000 | ||||
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 17%?
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 21%?
3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $10,000, 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 30 cents per unit, and the number of units sold decreases by 13%?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started