Miller Company's contribution format income statement for the most recent month is shown below:
Total Per Unit
Sales (33,000 units) $ 330,000 $ 10.00
Variable expenses 231,000 7.00
Contribution margin 99,000 $ 3.00
Fixed expenses 50,000
Net operating income $ 49,000
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 13%?
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 24%?
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 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 12%?
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Home » Business » Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (33,000 units) $ 330,000 $ 10.00 Variable expenses 231,000 7.00 Contribution margin 99,000 $ 3.