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

Total Per Unit

Sales $(45,000$ units$)$ $ $405,000$ $ $9\mathrm{.}00$

Variable expenses $270,0006\mathrm{.}00$

Contribution margin $135,000$ $ $3\mathrm{.}00$

Fixed expenses $48,000$

Net operating income $ $87,000$

Required:

$($Consider each case independently$)$:

What is the revised net operating income if unit sales increase by $16\%?$

What is the revised net operating income if the selling price decreases by $$1\mathrm{.}30$ per unit and the number of units sold increases by $24\%?$

What is the revised net operating income if the selling price increases by $$1\mathrm{.}30$ per unit, fixed expenses increase by $$8,000,$ and the number of units sold decreases by $8\%?$

What is the revised net operating income if the selling price per unit increases by $10\%,$ variable expenses increase by $20$ cents per unit, and the number of units sold decreases by $13\%?$

Answer rating: 100% (QA)

Answer We can analyze each scenario independently using the concept of contribution margin per unit ... View the full answer