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Miller Company's contribution format Income statement for the most recent month is shown below. Sales (44,000 units) Variable expenses $7.00 4.00 Total $300,000 176,000
Miller Company's contribution format Income statement for the most recent month is shown below. Sales (44,000 units) Variable expenses $7.00 4.00 Total $300,000 176,000 Per Unit Contribution margin 132,000 $ 3.00 Fixed expenses 43,000 Net operating income $ 89,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 12%? 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 20%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $5,000, 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 20%, variable expenses increase by 40 cents per unit, and the number of units sold decreases by 11%? 1 Net operating income 2 Net operating income 3. Not operating income 4. Not operating income
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