Question
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (36,000 units) $ 216,000 $ 6.00 Variable
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (36,000 units) $ 216,000 $ 6.00 Variable expenses 108,000 3.00 Contribution margin 108,000 $ 3.00 Fixed expenses 49,000 Net operating income $ 59,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%? 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 22%? 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 3%? 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 11%? 1. Net operating income $70,880 2. Net operating income 3. Net operating income 4. Net operating income $59,936 I need # 2 & 3
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