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Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (25,200 units) $ 151,200 $ 6.00 Variable

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

Total Per Unit
Sales (25,200 units) $ 151,200 $ 6.00
Variable expenses 90,720 3.60
Contribution margin 60,480 $ 2.40
Fixed expenses 35,280
Net operating income $ 25,200

Required:

(Consider each of the four requirements independently):

  1. Assume the sales volume increases by 3,780 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 16%?
  3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $8,000, 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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