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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):
- Assume the sales volume increases by 3,780 units:
- What is the revised net operating income?
- What is the percent increase in unit sales?
- Using the most recent months degree of operating leverage, what is the percent increase in net operating income?
- 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%?
- 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%?
- 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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