Question: Miller Companys most recent contribution format income statement is shown below: Total Per Unit Sales (39,000 units) $273,000 $7.00 Variable expenses 156,000 4.00 Contribution margin
Miller Companys most recent contribution format income statement is shown below: Total Per Unit Sales (39,000 units) $273,000 $7.00 Variable expenses 156,000 4.00 Contribution margin 117,000 $3.00 Fixed expenses 49,000 Net operating income $ 68,000 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 15%.
2. The selling price decreases by $1.20 per unit, and the number of units sold increases by 23%.
3. The selling price increases by $1.20 per unit, fixed expenses increase by $5,000, and the number of units sold decreases by 5%.
4. The selling price increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 11%.
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