Question
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (45,000 units) $ 360,000 $ 8.00 Variable
Miller Companys contribution format income statement for the most recent month is shown below:
Total | Per Unit | |
---|---|---|
Sales (45,000 units) | $ 360,000 | $ 8.00 |
Variable expenses | 225,000 | 5.00 |
Contribution margin | 135,000 | $ 3.00 |
Fixed expenses | 46,000 | |
Net operating income | $ 89,000 |
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 $1.20 per unit and the number of units sold increases by 25%?
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 decreases by 2%?
4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 7%?
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