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Miller Company's most recent contribution format income statement is shown below:
Total
Per Unit
Sales (31,000 units)
$186,000
$6.00
Variable expenses
93,000
3
Contribution margin
$3.00
Fixed expenses
43,000
Net operating income
$50,000
Required:
Prepare a new contribution format income statement under each of the following conditions (consider each case independently): (Do not round intermediate calculations. Round your "Per unit" answers to 2 decimal places.)
1. The number of units sold increases by 11%.
2. The selling price decreases by $1.30 per unit, and the number of units sold increases by 23%.
3. The selling price increases by $1.30 per unit, fixed expenses increase by $5,000, and the number of units sold decreases by 6%.
4. The selling price increases by 20%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 15%.
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