Miller Company’s contribution format income statement for the most recent month is shown below:

Question

Miller Company’s contribution format income statement for the most recent month is shown below:

total per unit

Sales (36,000 units)	$	252,000		$	7.00
Variable expenses		144,000			4.00
Contribution margin		108,000		$	3.00
Fixed expenses		40,000
Net operating income	$	68,000

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 $1.10 per unit and the number of units sold increases by 22%?

3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $7,000, 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 13%?

Answer 1