Question
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales: (39,000 units) $351,000 Total $9.00 per unit
Miller Companys contribution format income statement for the most recent month is shown below:
Total Per Unit Sales: (39,000 units) $351,000 Total $9.00 per unit
Variable expenses: $234,000 Total $6.00 per unit
Contribution margin: $117,000 Toal $3.00 per unit
Fixed expenses: $43,000 Total
Net operating income: $74,000 Total
Required: (Consider each case independently):
1. What is the revised net operating income if unit sales increase by 15%?
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 $6,000, 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 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 11%?
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