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Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (22,000 units) $199,800 $9.00 Variable expenses $119,880

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

Total Per Unit

Sales (22,000 units) $199,800 $9.00

Variable expenses $119,880 5.40

Contribution margin 79,920 3.60

Fixed expenses 46,620

Net operating income 33,300

Consider each four requirements independently:

  1. Assume the sales volume increases by 3,552 units:
  2. What is the revised net operating income?
  3. What is the percent increase in unit sales?
  4. Using the most recent months degree of operating leverage, what is the percent increase in net operating income?
  5. 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 15%?
  6. 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $9,000 and the number of units sold decreases by 6%?
  7. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 40 cents per unit and the number of units sold decreases by 12%?

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