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Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (41,000 units) $369,000 $ 9.00 Variable expenses
Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (41,000 units) $369,000 $ 9.00 Variable expenses 246,000 Contribution margin 123,000 6.00 $ 3.00 Fixed expenses 42,000 Net operating income $ 81,000 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 $1.10 per unit and the number of units sold increases by 15%? 3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 7%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 40 cents per unit, and the number of units sold decreases by 14%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income
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