Question: Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (41,000 units) $ 287,000 $ 7.00 Variable

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

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