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Item 5

Miller Companys contribution format income statement for the most recent month is shown below:

	Total			Per Unit
Sales (34,000 units)	$	170,000		$	5.00
Variable expenses		68,000			2.00
Contribution margin		102,000		$	3.00
Fixed expenses		43,000
Net operating income	$	59,000

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 $1.30 per unit and the number of units sold increases by 17%?

3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 7%?

4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 9%?

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