Miller Companys contribution format income statement for the most recent month is shown below: ...
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Accounting
Miller Companys contribution format income statement for the most recent month is shown below:
Total
Per Unit
Sales (39,000 units)
$
195,000
$
5.00
Variable expenses
78,000
2.00
Contribution margin
117,000
$
3.00
Fixed expenses
48,000
Net operating income
$
69,000
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 18%?
2. What is the revised net operating income if the selling price decreases by $1.50 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 $1.50 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 6%?
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 9%?
1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income
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