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Miller Company's contribution format income statement for the most recent month is shown below: Sales (40,000 units) Variable expenses Total $ 400,000 280,000 Contribution
Miller Company's contribution format income statement for the most recent month is shown below: Sales (40,000 units) Variable expenses Total $ 400,000 280,000 Contribution margin 120,000 Fixed expenses 46,000 Net operating income $ 74,000 Per Unit $10.00 7.00 $ 3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 19%? 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 19%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $8,000, and the number of units sold decreases by 5%? 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 10%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income $ 80,560
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