Reference no: EM132574949

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

                                                      Total Per Unit                         Sales

(41,000 units)                          $410,000                    $10.00

Variable expenses                      $287,000                         7.00

Contribution margin                        123,000                      $3.00

Fixed expenses                              43,000

Net operating income                   $80,000

Required:

(Consider each case independently):

Question 1. What is the revised net operating income if unit sales increase by 16%?

Question 2. What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of units sold increases by 21%?

Question 3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $5,000, and the number of units sold decreases by 3%?

Question 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 7%?