Miller Company$$s contribution format income statement for the most recent month is shown below:

Total Per Unit

Sales $(24,000$ units$)$ $ $144,000$ $ $6\mathrm{.}00$

Variable expenses $86,4003\mathrm{.}60$

Contribution margin $57,600$ $ $2\mathrm{.}40$

Fixed expenses $33,600$

Net operating income $ $24,000$

Required:

$($Consider each of the four requirements independently$)$:

Assume the sales volume increases by $3,600$ units:

What is the revised net operating income?

What is the percent increase in unit sales?

Using the most recent month$$s degree of operating leverage, what is the percent increase in net operating income?

What is the revised net operating income if the selling price decreases by $$1\mathrm{.}10$ per unit and the number of units sold increases by $15\%?$

What is the revised net operating income if the selling price increases by $$1\mathrm{.}10$ per unit, fixed expenses increase by $$9,000,$ and the number of units sold decreases by $8\%?$

What is the revised net operating income if the selling price per unit increases by $20\%,$ variable expenses increase by $10$ cents per unit, and the number of units sold decreases by $13\%?$

Answer rating: 100% (QA)

Miller Company Contribution Margin Analysis Well analyze the impact of various scenarios on Miller Companys net operating income based on the provided contribution format income statement Scenario 1 S... View the full answer