Miller Company’s most recent contribution format income statement is shown below:Total Per UnitSales (20,000 units) ............................. $300,000 $15.00Variable expenses ............................... 180,000 9.00Contribution margin ............................. 120,000 $ 6.00Fixed expenses ................................... 70,000Net operating income .......................... $ 50,000Required:Prepare a new contribution format income statement under each of the following conditions (consider eachcase independently):1. The number of units sold increases by 15%.2. The selling price decreases by $1.50 per unit, and the number of units sold increases by 25%.
Miller Company’s most recent contribution format income statement is shown below:
Total Per Unit
Sales (20,000 units) ............................. $300,000 $15.00
Variable expenses ............................... 180,000 9.00
Contribution margin ............................. 120,000 $ 6.00
Fixed expenses ................................... 70,000
Net operating income .......................... $ 50,000
Required:
Prepare a new contribution format income statement under each of the following conditions (consider each
case independently):
1. The number of units sold increases by 15%.
2. The selling price decreases by $1.50 per unit, and the number of units sold increases by 25%.
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