Miller Company’s contribution format income statement for the most recent month is shown below: TotalPer UnitSales (36,000 units)$ 180,000$ 5.00Variable expenses72,0002.00Contribution margin108,000$ 3.00Fixed expenses43,000 Net operating income$ 65,000 Required:(Consider each case independently): 1. What is the revised net operating income if unit sales increase by 17%?2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 24%?3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 3%?4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 13%? Sales (36,000 units)Variable expensesContribution marginFixed expensesNet operating incomeRequired:(Consider each case independently):Total$ 180,00072,000108,00043,000$ 65,000Per Unit$5.002.00$ 3.001. What is the revised net operating income if unit sales increase by 17%?2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases b24%?3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, andnumber of units sold decreases by 3%?1. Net operating income2. Net operating income3. Net operating income4. Net operating income4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents punit, and the number of units sold decreases by 13%?

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Miller Company’s contribution format income statement for the most recent month is shown below:

	Total	Per Unit
Sales (36,000 units)	$ 180,000	$ 5.00
Variable expenses	72,000	2.00
Contribution margin	108,000	$ 3.00
Fixed expenses	43,000
Net operating income	$ 65,000

Required:

(Consider each case independently):

1. What is the revised net operating income if unit sales increase by 17%?

2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 24%?

3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 3%?

4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 13%?