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Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (20,000 units) $300,000 $15.00 Variable expenses 180,000
Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (20,000 units) $300,000 $15.00 Variable expenses 180,000 9.00 Contribution margin 120,000 $ 6.00 Fixed expenses 70,000 Net operating income $ 50,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 15%? 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 25%? 3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%? 4. What is the revised net operating income if the selling price per unit increases by 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases
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