Reference no: EM133033258
Question - Miller Company's contribution format income statement for the most recent month is shown below:
Total Per Unit
Sales (42,000 units) $336,000 $8.00
Variable expenses 210,000 5.00
Contribution margin 126,000 $3.00
Fixed expenses 50,000
Net operating income $76,000
Required -
1. What is the revised net operating income if unit sales increase by 18%?
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 23%?
3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 8%?
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 15%?