Question
Miller Company's contribution format income statement for the most recent month is shown below: Sales (44,000 units) Variable expenses Total Per Unit $ $440,000
Miller Company's contribution format income statement for the most recent month is shown below: Sales (44,000 units) Variable expenses Total Per Unit $ $440,000 308,000 10.00 7.00 132,000 $ 3.00 Contribution margin Fixed expenses 49,000 Net operating income $ 83,000 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 $1.40 per unit and the number of units sold increases by 19%? 3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $5,000, and the number of units sold decreases by 6%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 10 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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