Question
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (38,000 units) $228,000 $ 6.00 Variable expenses
Miller Companys contribution format income statement for the most recent month is shown below:
Total Per Unit
Sales (38,000 units) $228,000 $ 6.00
Variable expenses 114,000 3.00
Contribution margin 114,000 $ 3.00
Fixed expenses 50,000
Net operating income $ 64,000
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 increased by 22%?
3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $7,000, and the number of units sold decreased by 6%?
4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 40 cents per unit, and the number of units sold decreased by 5%?
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