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Miller Company's contribution format income statement for the most recent month is shown below. Sales (36,000 units) Variable expenses Per Unit $6.00 3.00 Total
Miller Company's contribution format income statement for the most recent month is shown below. Sales (36,000 units) Variable expenses Per Unit $6.00 3.00 Total $216,000 108,000 108,000 $ 3.00 Contribution margin Fixed expenses 47,000 Set operating income $ 61,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 12% ? 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 23%? 3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 7%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 6%? 1. Net operating income 2. Net operating income $ 78,280 20,966 3. Net operating income 98,064 4. Net operating income $ 108.664
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