Miller Company’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (35,000 units) $ 280,000 $ 8.00 Variable expenses 175,000 5.00 Contribution margin 105,000 $ 3.00 Fixed expenses 42,000 Net operating income $ 63,000 Required: (Consider each case independently):
Miller Company’s contribution format income statement for the most recent month is shown below:
| Total | Per Unit | |
|---|---|---|
| Sales (35,000 units) | $ 280,000 | $ 8.00 |
| Variable expenses | 175,000 | 5.00 |
| 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 14%?
2. What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 20%?
3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $6,000, 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 12%?
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
