Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit
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Question:
Miller Company’s contribution format income statement for the most recent month is shown below:
Total | Per Unit | |
---|---|---|
Sales (30,000 units) | $ 270,000 | $ 9.00 |
Variable expenses | 180,000 | 6.00 |
Contribution margin | 90,000 | $ 3.00 |
Fixed expenses | 48,000 | |
Net operating income | $ 42,000 |
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 12%?
2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 23%?
3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $5,000, and the number of units sold decreases by 3%?
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 decreases by 12%?
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