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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:
- Assume the sales volume increases by 3,552 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 15%?
- 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%?
- 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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