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Miller Companys contribution format income statement for the most recent month is shown below: Sales (32,000 units) Variable expenses Total $ 288,000 192,000 Per Unit
Miller Companys contribution format income statement for the most recent month is shown below:
Sales (32,000 units) Variable expenses Total $ 288,000 192,000 Per Unit $ 9.00 6.00 $ 3.00 Contribution margin Fixed expenses Net operating income 96,000 49,000 $ 47,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 12%? 2. What is the revised net operating income if the selling price decreases by $1.30 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 $1.30 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 6%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 15%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating incomeStep by Step Solution
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