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Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (23,400 units) $ 210,600 $ 9.00 Variable
Miller Companys contribution format income statement for the most recent month is shown below:
Total | Per Unit | |
---|---|---|
Sales (23,400 units) | $ 210,600 | $ 9.00 |
Variable expenses | 126,360 | 5.40 |
Contribution margin | 84,240 | $ 3.60 |
Fixed expenses | 49,140 | |
Net operating income | $ 35,100 |
Required:
(Consider each of the four requirements independently):
- Assume the sales volume increases by 3,744 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 $1.20 per unit and the number of units sold increases by 20%?
- What is the revised net operating income if the selling price increases by $1.20 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 10%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 8%?
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