Question
Miller Company's most recent contribution format income statement is shown below:Total Per Unit Sales (20,000 units) ... $300,000 $15.00 Variable expenses ... $180,000 $9.00 Contribution
Miller Company's most recent contribution format income statement is shown below:Total Per Unit
Sales (20,000 units) ...
$300,000
$15.00
Variable expenses ...
$180,000
$9.00
Contribution margin ...
$120,000
$6.00
Fixed expenses ...
$70,000
Net operating income ...
$50,000
Required:
Prepare a new contribution format income statement under each of the following conditions (consider each case independently):
1. The number of units sold increases by 15%.
2. The selling price decreases by $1.50 per unit, and the number of units sold increases by 25%.
3. The selling price increases by $1.50 per unit, fixed expenses increase by $20,000. and the number of units sold decreases by 5%.
4. The selling price increases by 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by 10%.
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