Miller Companys most recent contribution format income statement is shown below: Total Per Unit Sales (39,000 units)
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Question:
Miller Companys most recent contribution format income statement is shown below:
Total | Per Unit | ||
Sales (39,000 units) | $273,000 | $7.00 | |
Variable expenses | 156,000 | 4.00 | |
Contribution margin | 117,000 | $3.00 | |
Fixed expenses | 46,000 | ||
Net operating income | $ 71,000 | ||
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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 15%.
2. The selling price decreases by $1.30 per unit, and the number of units sold increases by 19%.
3. The selling price increases by $1.30 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 4%.
4. The selling price increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 7%.
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