Question
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (31,000 units) $ 186,000 $ 6.00 Variable
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (31,000 units) $ 186,000 $ 6.00 Variable expenses 93,000 3.00 Contribution margin 93,000 $ 3.00 Fixed expenses 46,000 Net operating income $ 47,000 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 16%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 2%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 6%?
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