Question: Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (35,000 units) $ 210,000 $ 6.00 Variable
Miller Companys contribution format income statement for the most recent month is shown below:
| Total | Per Unit | |
|---|---|---|
| Sales (35,000 units) | $ 210,000 | $ 6.00 |
| Variable expenses | 105,000 | 3.00 |
| Contribution margin | 105,000 | $ 3.00 |
| Fixed expenses | 42,000 | |
| Net operating income | $ 63,000 |
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 19%?
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 16%?
3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, 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 10%, variable expenses increase by 40 cents per unit, and the number of units sold decreases by 11%?
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