Question
Miller Companys most recent contribution format income statement is shown below: Total Per Unit Sales (37,000 Units) $370,000 $10.00 Variable Expenses $259,000 $7.00 Contribution Margin
Miller Companys most recent contribution format income statement is shown below:
Total | Per Unit | |
Sales (37,000 Units) | $370,000 | $10.00 |
Variable Expenses | $259,000 | $7.00 |
Contribution Margin | $111,000 | $3.00 |
Fixed Expenses | $44,000 | |
Net Operating Income | $67,000 |
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 $1.40 per unit, and the number of units sold increases by 24%.
3. The selling price increases by $1.40 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 2%.
4. The selling price increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 14%.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started