Question: Miller Company's contribution format income statement for the most recent month is shown below: Total Sales (24,000 units) Variable expenses $ 144,000 86,400 Contribution
Miller Company's contribution format income statement for the most recent month is shown below: Total Sales (24,000 units) Variable expenses $ 144,000 86,400 Contribution margin 57,600 Per Unit $ 6.00 3.60 $ 2.40 Fixed expenses 33,600 Net operating income $ 24,000 Required: (Consider each of the four requirements independently): 1. Assume the sales volume increases by 3,840 units: a. What is the revised net operating income? b. What is the percent increase in unit sales? c. Using the most recent month's degree of operating leverage, what is the percent increase in net operating income? 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 15%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 6%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 8%? 1a. Net operating income 1b. Percent increase in unit sales 1c. Percent increase in net operating income 2. Net operating income (loss) 3. Net operating income 4. Net operating income %
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