Question
Miller Companys contribution format income statement for the most recent month is shown below: Required : (Consider each case independently): 1.What is the revised net
Miller Companys contribution format income statement for the most recent month is shown below:
Required: (Consider each case independently):
1.What is the revised net operating income if unit sales increase by 20%?
2.What is the revised net operating income if the selling price decreases by $2.00 per unit and the number of units sold increases by 15%?
3.What is the revised net operating income if the selling price increases by $2.00 per unit, fixed expenses increase by $15,000, 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 80 cents per unit, and the number of units sold decreases by 8%?
Per Unit $18.00 10.00 Sales (25,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $450,000 250,000 $200,000 85,000 $115,000 $ 8.00
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