Question
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (30,000 units) $ 180,000 $ 6.00 Variable
Miller Companys contribution format income statement for the most recent month is shown below:
Total | Per Unit | |||||
Sales (30,000 units) | $ | 180,000 | $ | 6.00 | ||
Variable expenses | 90,000 | 3.00 | ||||
Contribution margin | 90,000 | $ | 3.00 | |||
Fixed expenses | 44,000 | |||||
Net operating income | $ | 46,000 | ||||
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (30,000 units) $ 180,000 $ 6.00 Variable expenses 90,000 3.00 Contribution margin 90,000 $ 3.00 Fixed expenses 44,000 Net operating income $ 46,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 18%? 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 24%? 3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $8,000, 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 20%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 15%?
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