Question
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (36,000 units) $ 180,000 Per unit $
Miller Companys contribution format income statement for the most recent month is shown below:
Total Per Unit Sales (36,000 units) $ 180,000
Per unit $ 5.00
Variable expenses 72,000
Per Unit 2.00
Contribution margin 108,000
Per Unit $ 3.00
Fixed expenses 48,000
Net operating income $ 60,000
(Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%? 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 17%? 3. What is the revised net operating income if the selling price increases by $1.50 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 30 cents per unit, and the number of units sold decreases by 7%?
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