Question

Miller Company’s most recent contribution format income statement is shown below: Total Per Unit Sales (39,000 units) $351,000 $9.00 Variable expenses 234,000 6.00 Contribution margin 117,000 $3.00 Fixed expenses 43,000 Net operating income $ 74,000 Required: (Note: this question is effectively the same as the last question, except we will be completing income statements without the Sales and Variable Expenses lines). For each of the following conditions, first calculate the new number of units sold and new contribution margin per unit. Then complete the partial income statement for that condition (consider each case independently). (Do not round intermediate calculations. Round your "Per unit" answers to 2 decimal places.) 1. The number of units sold increases by 10%. 2. The selling price decreases by $1.30 per unit, and the number of units sold increases by 20%. 3. The selling price increases by $1.30 per unit, fixed expenses increase by $8,000, and the number of units sold decreases by 6%. 4. The selling price increases by 10%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 10%.

Answer 1