Reference no: EM133017605
Question - Miller Company's contribution format income statement for the most recent month is shown below:
Total Per Unit
Sales (33,000 units) $297,000 $9.00
Variable expenses 1 98,000 6.00
Contribution margin 99,000 $3.00
Fixed expenses 40,000
Net operating income $59,000
Required - Consider each case independently:
1. What is the revised net operating income if unit sales increase by 15%?
2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 17%?
3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $7,000, 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 30 cents per unit, and the number of units sold decreases by 15%?
5. For financial accounting purposes, what is the total amount of product costs incurred to make 12,000 units?
6. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units?