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Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (25,000 units) $450,000 $18.00 Variable expenses 250,000
Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (25,000 units) $450,000 $18.00 Variable expenses 250,000 10.00 Contribution margin $200,000 $ 8.00 Fixed expenses 85,000 Net operating income $115,000 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%
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