Miller Company's contribution format income statement for the most recent month is shown below Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 14% ? 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 19%6? 3. What is the revised net operating income if the selling price increases by $1,40 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 4% ? 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 13% ? Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 26,100 games last year at a selling price of $62 per game. Fixed expenses associated with the game total $435,000 per year, and variable expenses are $42 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format income statement for the game last year. ib. Compute the degree of operating leverage. 2. Management is confident that the company can sell 32,103 games next year (an increase of 6,003 games, or 23\%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare ap income statement; use the degree of operating leverage to compute your answer) Complete this question by entering your answers in the tabs below. Prepare a contribution format income statement for the game last year. Prepare a contribution format income statement for the game last year. 1-D. Compute the degree of operating leverage. 2. Management is confident that the company can sell 32,103 games next year Given this assumption: a. What is the expected percentage increase in net operating income for next y b. What is the expected amount of net operating income for next year? (Do not operating leverage to compute your answer.) Complete this question by entering your answers in the tabs below. Compute the degree of operating leverage. a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income statement, use the degre. operating leverage to compute your answer.) Complete this question by entering your answers in the tabs below. Management is confident that the compayy can sell 32,103 games next year (an increase of 6,003 games, or 23\%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income otatement; use the degree of operating leverage to compute your answer.)
