Question
Miller Company's contribution format income statement for the most recent month is shown below: Sales (36,000 units) Variable expenses Total $ 288,000 180,000 108,000
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Miller Company's contribution format income statement for the most recent month is shown below: Sales (36,000 units) Variable expenses Total $ 288,000 180,000 108,000 49,000 Contribution margin Fixed expenses Net operating income $ 59,000 Required: Per Unit $ 8.00 5.00 $ 3.00 (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 $1.40 per unit and the number of units sold increases by 18%? 3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $5,000, 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 20%, variable expenses increase by 40 cents per unit, and the number of units sold decreases by 8%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income
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