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Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (27,600 units) $ 165,600 $ 6.00 Variable
Miller Companys contribution format income statement for the most recent month is shown below:
Total | Per Unit | |
---|---|---|
Sales (27,600 units) | $ 165,600 | $ 6.00 |
Variable expenses | 99,360 | 3.60 |
Contribution margin | 66,240 | $ 2.40 |
Fixed expenses | 38,640 | |
Net operating income | $ 27,600 |
Required:
(Consider each of the four requirements independently):
- Assume the sales volume increases by 4,692 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 $1.10 per unit and the number of units sold increases by 23%?
- What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 3%?
- What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 40 cents per unit, and the number of units sold decreases by 10%?
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