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Miller Company's most recent contribution format income statement is shown below: Sales (39,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $234,000
Miller Company's most recent contribution format income statement is shown below: Sales (39,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $234,000 117,000 117,000 41,000 $ 76,000 Per Unit $6.00 3.00 $3.00 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 17%. Miller Company Contribution Income Statement Total Per Unit Sales $ 273,780 $ 6.00 Variable expenses 3.00 Contribution margin 273,780 $ 3.00 Fixed expenses Net operating income $ 273,780 2. The selling price decreases by $1.30 per unit, and the number of units sold increases by 22%. Miller Company Contribution Income Statement Contrib Total Per Unit 0 $ 0.00 $ 0 3. The selling price increases by $1.30 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 4%. Miller Company Contribution Income Statement Total Per Unit 0 $ 0.00 $ 4. The selling price increases by 10%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 14%. Miller Company Contribution Income Statement Total Per Unit 0 $ 0.00 $ 0
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