Reference no: EM132607729

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:

Question 1: 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%.

3. The selling price increases by $1.50 per unit, fixed expenses increase by $20,000. and the number of units sold decreases by 5%.

4. The selling price increases by 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by 10%.