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Miller Company's contribution format income statement for the most recent month is shown below. Sales (43,000 units) Variable expenses Total $ 258,000 129,000 Contribution
Miller Company's contribution format income statement for the most recent month is shown below. Sales (43,000 units) Variable expenses Total $ 258,000 129,000 Contribution margin 129,000 Per Unit $ 6.00 3.00 $ 3.00 Fixed expenses 46,000 Net operating income. $ 83,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 10% ? 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 25%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $8,000, 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 40 cents per unit, and the number of units sold decreases by 5% ?
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