Reference no: EM132967187
Miller Company's contribution format income statement for the most recent month is shown below:
Total Per UnitSales (35,000 units)$280,000 $8.00 Variable expenses 175,000 5.00 Contribution margin 105,000 $3.00 Fixed expenses 44,000 Net operating income$61,000
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 11%?
2. What is the revised net operating income if the selling price decreases by $1.10 per unit and the number of units sold increases by 22%?
3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 4%?
4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 12%?