Miller Company?s most recent income statement follows:

Required:

Prepare a new income statement under each of the following conditions (consider each case independently):

1. The sales volume increases by 15%, and the selling price decreases by $1.00.

2. The selling price decreases by $2.50 per unit, and the sales volume increases by 25%.

3. The selling price increases by $0.50 per unit, fixed expenses increase by $20,000, and the sales volume decreases by 5%.

4. The selling price increases by 5%, variable expenses increase by 60 cents per unit, and the sales volume decreases by 10%.

Transcribed Image Text:

Per Unit Total Sales (20,000 units) $300,000 $16 Less: Variable ex penses 9. 180.000 Contribution margin 120,000 $ 6 Less: Fixed expenses 70,000 Net income $ 50,000