Question
Miller Companys most recent contribution format income statement is shown below: Total Per Unit Sales (35,000 units) $280,000 $8.00 Variable expenses 175,000 5.00 Contribution margin
Miller Companys most recent contribution format income statement is shown below:
Total Per Unit Sales (35,000 units) $280,000 $8.00 Variable expenses 175,000 5.00 Contribution margin 105,000 $3.00 Fixed expenses 41,000 Net operating income $ 64,000
Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): (Do not round intermediate calculations. Round your "Per unit" answers to 2 decimal places.) 1. The number of units sold increases by 13%. 2. The selling price decreases by $1.50 per unit, and the number of units sold increases by 23%. 3. The selling price increases by $1.50 per unit, fixed expenses increase by $8,000, and the number of units sold decreases by 3%. 4. The selling price increases by 20%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 5%.
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