Question
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (31,000 units) $ 279,000 $ 9.00 Variable
Miller Companys contribution format income statement for the most recent month is shown below:
Total | Per Unit | |||||
Sales (31,000 units) | $ | 279,000 | $ | 9.00 | ||
Variable expenses | 186,000 | 6.00 | ||||
Contribution margin | 93,000 | $ | 3.00 | |||
Fixed expenses | 41,000 | |||||
Net operating income | $ | 52,000 | ||||
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 16%?
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 22%?
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 3%?
4. 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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