Miller Companys contribution format income statement for the most recent month is shown below:
Total Per Unit
Sales units $ $
Variable expenses
Contribution margin $
Fixed expenses
Net operating income $
Required:
Consider each of the four requirements independently:
Assume the sales volume increases by units:
What is the revised net operating income?
What is the percent increase in unit sales?
Using the most recent months degree of operating leverage, what is the percent increase in net operating income?
What is the revised net operating income if the selling price decreases by $ per unit and the number of units sold increases by
What is the revised net operating income if the selling price increases by $ per unit, fixed expenses increase by $ and the number of units sold decreases by
What is the revised net operating income if the selling price per unit increases by variable expenses increase by cents per unit, and the number of units sold decreases by
