Miller Company’s contribution format income statement for themost 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 |
Miller Company’s contribution format income statement for themost recent month is shown below: Total Per Unit Sales (37,000units) $ 185,000 $ 5.00 Variable expenses 74,000 2.00 Contributionmargin 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 salesincrease by 13%?
2. What is the revised net operating income if the selling pricedecreases by $1.20 per unit and the number of units sold increasesby 18%?
3. What is the revised net operating income if the selling priceincreases by $1.20 per unit, fixed expenses increase by $7,000, andthe number of units sold decreases by 4%?
4. What is the revised net operating income if the selling priceper unit increases by 10%, variable expenses increase by 10 centsper unit, and the number of units sold decreases by 5%?
