Question: Miller Company's most recent contribution format income statement is shown below. Sales (34,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $204,000


Miller Company's most recent contribution format income statement is shown below. Sales (34,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $204,000 102 000 102,000 46.000 $ 56.000 Per Unit $6.00 3.00 $3.00 Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): (Do not round intermediate places.) 1. The number of units sold increases by 12% Miller Company Contribution Income Statement Total Per Unit Sales $ 228,480 s 6.00 Variable expenses 3.00 Contribution margin 126.480 S 300 Foed expenses 46,000 Net operating income $ 80.4301 2. The selling price decreases by $1.50 per unit, and the number of units sold increases by 19% Per Unit S Miller Company Contribution Income Statement Total Sales S 182,070 Variable expenses Contribution margin 182,070 Ficed expenses 46,000 Net operating income $ 136,070 S 3. The selling price increases by $1.50 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 5% $ Miller Company Contribution Income Statement Total Sales $ 242,250 Variable expenses Contribution margin 242,250 Fixed expenses 52.000 Net operating income $ 190,250 Per Unit 7.50 3.00 4.50 $ 4. The selling price increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 5%. Miller Company Contribution Income Statement Total Per Unit Sales $ 232,560 S Variable expenses Contribution margin 232,560 S Fixed expenses 46,000 Net operating income $ 186,560
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