Question: Miller Companys most recent contribution format income statement is shown below: Total Per Unit Sales (37,000 units) $370,000 $10.00 Variable expenses $259,000 $7.00 Contribution margin
Miller Companys most recent contribution format income statement is shown below:
Total Per Unit
Sales (37,000 units) $370,000 $10.00
Variable expenses $259,000 $7.00
Contribution margin $111,000 $3.00
Fixed expenses $45,000
Net operating income $66,000
Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): (Do not round intermediate calculations. Round your "Per unit" answers to 2 decimal places.)
1. The number of units sold increases by 20%.
Total Per Unit
Sales
Variable Expenses
Contribution Margin
Fixed Expenses
Net Operating Income
2. The selling price decreases by $1.40 per unit, and the number of units sold increases by 20%.
Total Per Unit
Sales
Variable Expenses
Contribution Margin
Fixed Expenses
Net Operating Income
3. The selling price increases by $1.40 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 7%.
Total Per Unit
Sales
Variable Expenses
Contribution Margin
Fixed Expenses
Net Operating Income
4. The selling price increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 7%.
Total Per Unit
Sales
Variable Expenses
Contribution Margin
Fixed Expenses
Net Operating Income
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