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

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 25%?
3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%?
4. What is the revised net operating income if the selling price per unit increases by 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by 10%?

Transcribed Image Text:

Total Per Unit Sales (20,000 units) Variable expenses.····· Contribution margin O0 $15.00 80,000 9.00 1 70,000 Net operating income... 500o