Question
Miller Companys contribution format income statement for the most recent month is shown below: TotalPer UnitSales (34,000 units)$ 238,000$ 7.00Variable expenses136,0004.00Contribution margin102,000$ 3.00Fixed expenses47,000 Net
Miller Companys contribution format income statement for the most recent month is shown below:
TotalPer UnitSales (34,000 units)$ 238,000$ 7.00Variable expenses136,0004.00Contribution margin102,000$ 3.00Fixed expenses47,000 Net operating income$ 55,000
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 13%?
2. What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of units sold increases by 20%?
3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 5%?
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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