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  3. es required: 1. what is the company's degree of op

es Required: 1. What is the company's degree of operating leverage? 2. Using the degree...

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Accounting

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es Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 13% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 13% increase in sales. Miller Company's contribution format income statement for the most recent month is shown below. Sales (39,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 351,000 234,000 117,000 45,000 $ 72,000 Per Unit $ 9.00 6.00 $ 3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%? 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 3. What is the revised net operating income if the selling price increases by $120 per unit, fixed expenses increase by $7,000, and the 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 9%? 21%? 1. Net operating income 2 Net operating income 3 Net operating income 4. Net operating income

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