Question
Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (37,000 units) $ 259,000 $ 7.00 Variable
Miller Companys contribution format income statement for the most recent month is shown below:
Total Per Unit
Sales (37,000 units) $ 259,000 $ 7.00
Variable expenses 148,000 4.00
Contribution margin 111,000 $ 3.00
Fixed expenses 48,000
Net operating income $ 63,000
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 $1.10 per unit and the number of units sold increased by 17%?
3. What is the revised net operating income if the selling price increases by $1.10 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 10 cents per unit, and the number of units sold decreases by 9%?
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