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Miller Companys most recent contribution format income statement is shown below: Total Per Unit Sales (34,000 units) $272,000 $8.00 Variable expenses 170,000 5.00 Contribution margin
Miller Companys most recent contribution format income statement is shown below: |
Total | Per Unit | |
Sales (34,000 units) | $272,000 | $8.00 |
Variable expenses | 170,000 | 5.00 |
Contribution margin | 102,000 | $3.00 |
Fixed expenses | 46,000 | |
Net operating income | $ 56,000 | |
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 15%. |
2. | The selling price decreases by $1.40 per unit, and the number of units sold increases by 22%. |
3. | The selling price increases by $1.40 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 7%. |
4. | The selling price increases by 10%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 14%. |
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