Miller Companys contribution format income statement for the most recent month is shown below:

	Total			Per Unit
Sales (37,000 units)	$	259,000		$	7.00
Variable expenses		148,000			4.00
Contribution margin		111,000		$	3.00
Fixed expenses		47,000
Net operating income	$	64,000

Required:

(Consider each case independently):

1. What is the revised net operating income if unit sales increase by 17%?

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 19%?

3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $6,000, 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 30 cents per unit, and the number of units sold decreases by 9%?

Miller Companys contribution format income statement for the most recent month is shown below:

	Total			Per Unit
Sales (37,000 units)	$	259,000		$	7.00
Variable expenses		148,000			4.00
Contribution margin		111,000		$	3.00
Fixed expenses		47,000
Net operating income	$	64,000

Required:

(Consider each case independently):

1. What is the revised net operating income if unit sales increase by 17%?

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 19%?

3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $6,000, 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 30 cents per unit, and the number of units sold decreases by 9%?

1. NET INCOME

2. NET INCOME

3. NET INCOME

4. NET INCOME