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

	Total	Per Unit
Sales (23,400 units)	$ 140,400	$ 6.00
Variable expenses	84,240	3.60
Contribution margin	56,160	$ 2.40
Fixed expenses	32,760
Net operating income	$ 23,400

Required:

(Consider each of the four requirements independently):

1. Assume the sales volume increases by 3,744 units:
   1. What is the revised net operating income?
   2. What is the percent increase in unit sales?
   3. Using the most recent months degree of operating leverage, what is the percent increase in net operating income?
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 22%?
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 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 7%?

1a. Net operating income

1b. Percent increase in unit sales16%

1c. Percent increase in net operating income%

2. Net operating income (loss)

3. Net operating income

4. Net operating income