PLEASE ANSWER BOTH QUESTIONS ALL PARTS THANK YOU

QUESTION 1

Miller Companys contribution format income statement for the most recent month is shown below:

	Total	Per Unit
Sales (41,000 units)	$ 328,000	$ 8.00
Variable expenses	205,000	5.00
Contribution margin	123,000	$ 3.00
Fixed expenses	49,000
Net operating income	$ 74,000

Required:

(Consider each case independently):

1. What is the revised net operating income if unit sales increase by 15%?

2. What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 22%?

3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 2%?

4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 6%?

1. Net operating income ______

2. Net operating income ______

3. Net operating income ______

4. Net operating income ______

QUESTION 2

he Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotels business is highly seasonal, with peaks occurring during the ski season and in the summer.

Month	Occupancy-Days	Electrical Costs
January	2,630	$ 10,783
February	3,130	$ 12,833
March	3,640	$ 13,583
April	1,090	$ 4,469
May	1,770	$ 7,257
June	1,730	$ 7,093
July	4,440	$ 14,854
August	3,860	$ 13,815
September	2,170	$ 8,897
October	1,210	$ 4,961
November	1,790	$ 7,339
December	2,930	$ 12,013

Required:

Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.)

1. Variable cost of electricity _______ per occupancy-day

2. Fixed cost of electricity _________ per month