Miller Companys contribution format income statement for the most recent month is shown below:

	Total			Per Unit
Sales (38,000 units)	$	266,000		$	7.00
Variable expenses		152,000			4.00
Contribution margin		114,000		$	3.00
Fixed expenses		48,000
Net operating income	$	66,000

Required:

(Consider each case independently):

1. What is the revised net operating income if unit sales increase by 19%?

2. What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of units sold increases by 15%?

3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 7%?

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 10%?

8.7.1