Miller Company’s contribution format income statement for the most recent month is shown below:
|Sales (40,000 units)||$||280,000||$||7.00|
|Net operating income||$||77,000|
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 12%?
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 21%?
3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $5,000, and the number of units sold decreases by 7%?
4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 40 cents per unit, and the number of units sold decreases by 14%?
|Sales (44,800 units)||313600||7|
|Revised net operating income||91400|
|Sales (48,400 units)||280720||5.8|
|Revised net operating income||44120|
|Sales (37,200 units)||305040||8.2|
|Revised net operating income||108240|
|Sales (34,400 units)||264880||7.7|
|Revised net operating income||70520|
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