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Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (27,000 units) $ 162,000 $ 6.00 Variable
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (27,000 units) $ 162,000 $ 6.00 Variable expenses 97,200 3.60 Contribution margin 64,800 $ 2.40 Fixed expenses 37,800 Net operating income $ 27,000 Required: (Consider each of the four requirements independently): 1 Assume the sales volume increases by 4,320 units: a What is the revised net operating income? b What is the percent increase in unit sales? c 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 $1.20 per unit and the number of units sold increases by 25%? 3 What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $6,000, 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 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 13%
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