Question
Miller Companys contribution format income statement for the most recent month is shown below: TotalPer UnitSales (30,000 units)$ 270,000$ 9.00Variable expenses180,0006.00Contribution margin90,000$ 3.00Fixed expenses47,000Net operating
Miller Companys contribution format income statement for the most recent month is shown below:
TotalPer UnitSales (30,000 units)$ 270,000$ 9.00Variable expenses180,0006.00Contribution margin90,000$ 3.00Fixed expenses47,000Net operating income$ 43,000Required:
(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 20%?
3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $5,000, 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 10%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 11%?
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