Question
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Total Per Unit Sales (30,000 units) $ 210,000
Miller Companys contribution format income statement for the most recent month is shown below:
Total Per Unit
Total Per Unit Sales (30,000 units) $ 210,000 $ 7.00
Variable expenses $120,000 $ 4.00
Contribution margin $90,000 $ 3.00
Fixed expenses $43,000
Net operating income $ 47,000
Required: (Consider each case independently):
1. What is the revised net operating income if unit sales increase by 11%?
2. 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 17%?
3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 6%?
4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 8%?
1 | Net operating income | |
2 | Net operating income | |
3 | Net operating income | |
4 | Net operating income |
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