Question
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (42,000 units) $ 336,000 $ 8.00 Variable
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (42,000 units) $ 336,000 $ 8.00 Variable expenses 210,000 5.00 Contribution margin 126,000 $ 3.00 Fixed expenses 42,000 Net operating income $ 84,000 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 20%? 3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 7%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 9%?
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