Question
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (45,000 units) $ 405,000 $ 9.00 Variable
Miller Companys contribution format income statement for the most recent month is shown below:
Total Per Unit Sales (45,000 units) $ 405,000 $ 9.00 Variable expenses 270,000 6.00 Contribution margin 135,000 $ 3.00 Fixed expenses 44,000 Net operating income $ 91,000
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 $1.20 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 $5,000, 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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