Question
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (44,000 units) $ 308,000 $ 7.00 Variable
Miller Companys contribution format income statement for the most recent month is shown below:
Total | Per Unit | |
---|---|---|
Sales (44,000 units) | $ 308,000 | $ 7.00 |
Variable expenses | 176,000 | 4.00 |
Contribution margin | 132,000 | $ 3.00 |
Fixed expenses | 41,000 | |
Net operating income | $ 91,000 |
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 13%?
2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 19%?
3. What is the revised net operating income if the selling price increases by $1.20 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 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 11%?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started