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Miller Company's contribution format income statement for the most recent month is shown below: Sales (20,000 units) Variable expenses Contribution margin Fixed expenses Net
Miller Company's contribution format income statement for the most recent month is shown below: Sales (20,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: Total $ 300,000 180,000 Per Unit $ 15.00 120,000 9.00 $ 6.00 70,000 $ 50,000 (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 $1.50 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 $20,000, 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 12%, variable expenses increase by 6C cents per unit, and the number of units sold decreases by 10%?
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