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Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (32,000 units) Variable expenses $ 256,000
Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (32,000 units) Variable expenses $ 256,000 $ 8.00 160,000 5.00 Contribution margin Fixed expenses 96,000 50,000 $ 3.00 Net operating income $ 46,000 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 20%? 3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $7,000, 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 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 6%? Answer is not complete. 1. Net operating income $ 84,400 2. Net operating income 3. Net operating income 4. Net operating income
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