Miller Companys contribution format income statement for the most recent month is shown below:

Required:

(Consider each case independently):

1. What is the revised net operating income if unit sales increase by 20%?

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 20%?

3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 8%?

4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 20 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 Per Unit $10.00 7.00 Sales (42,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 420,000 294,000 126,000 48,000 $ 78,000 $ 3.00