Question
Miller Companys contribution format income statement for the most recent month is shown below: Total. Per Unit Sales (44,000 units) $ 308,000 $7.00 Variable expenses
Miller Companys contribution format income statement for the most recent month is shown below:
Total. Per Unit
Sales (44,000 units) $ 308,000 $7.00
Variable expenses 176,000 4.00
Contribution margin 132,000 $ 3.00
Fixed expenses. 50,000
Net operating income $82,000
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 $1.10 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 $1.10 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 12%?
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