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Miller Company's contribution format income statement for the most recent month is shown below. Sales (30,000 units) Variable expenses Total Per Unit $ 240,000
Miller Company's contribution format income statement for the most recent month is shown below. Sales (30,000 units) Variable expenses Total Per Unit $ 240,000 150,000 Contribution margin 90,000 $ 8.00 5.00 $ 3.00 47,000 Net operating income $ 43,000 Required: Fixed expenses (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 $1.50 per unit and the number of units sold increases by 25%? 3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 4%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 12% ? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income
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