Question
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (33,000 units) $ 231,000 $ 7.00 Variable
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (33,000 units) $ 231,000 $ 7.00 Variable expenses 132,000 4.00 Contribution margin 99,000 $ 3.00 Fixed expenses 48,000 Net operating income $ 51,000 Required: (Consider each case independently): What is the revised net operating income if unit sales increase by 17%? What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 18%? What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 4%? What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 7%?
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