Question
Miller Company's contribution format income statement for the most recent month is shown below: Total Rer Unit Sales (38,000 units ) $228,000 $6.00 Variable expenses
Miller Company's contribution format income statement for the most recent month is shown below: Total Rer Unit Sales (38,000 units ) $228,000 $6.00 Variable expenses 114,000 3.00 Contribution nargin 114,000 $3.00 Fixed expenses $44,000 Net operating income $70,000 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 $7,000, 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 20%, variable expenses increase by 10 cents per unit, & the number of units sold decreases by 5%?
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