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

	Total			Per Unit
Sales (41,000 units)	$	287,000		$	7.00
Variable expenses		164,000			4.00
Contribution margin		123,000		$	3.00
Fixed expenses		42,000
Net operating income	$	81,000

Required:

(Consider each case independently):

1. What is the revised net operating income if unit sales increase by 14%?

2. What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of units sold increased by 18%?

3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $8,000, and the number of units sold decreased by 4%?

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 decreased by 6%?

1.	Net operating income
2.	Net operating income
3.	Net operating income
4.	Net operating income

Answer rating: 100% (QA)

1 Units sales 41 000 14 41 000 Unit sales 46 740 2 Selling price View the full answer