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Accounting
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Item5
Miller Companys contribution format income statement for the most recent month is shown below:
Total
Per Unit
Sales (37,000 units)
$ 185,000
$ 5.00
Variable expenses
74,000
2.00
Contribution margin
111,000
$ 3.00
Fixed expenses
44,000
Net operating income
$ 67,000
Required:
(Consider each case independently):
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 20%?
3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 5%?
4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 10%?
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