Question
Miller Company's contribution format income statement for the most recent month is shown below: Sales (34,000 units) Variable expenses Fixed expenses Contribution margin Net
Miller Company's contribution format income statement for the most recent month is shown below: Sales (34,000 units) Variable expenses Fixed expenses Contribution margin Net operating income Required: Total $ 238,000 136,000 102,000 50,000 $ 52,000 Per Unit $ 7.00 4.00 $ 3.00 (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 14%? 2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 22%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $9,000, 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 10%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 11%?
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