Question

please answer all parts. Thanks!

Miller Company's contribution format income statement for the most recent month is shown below: Score answer Sales (35,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 324,000 216,000 108,000 47,000 $ 61,000 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 16%? 2. What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of units sold increases by 15%? 3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 8%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 10%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income

Answer 1

Requirement: 1 Per Unit Sales Variable expenses Contribution margin Fixed expenses Net operating Income Total 375840 250560 125280 47000 78280 Requirement: 2 Sales Variable expenses Contribution margin Fixed expenses Net operating Income Total 314640 248400 66240 47000 19240 Per Unit 7.60 6.00 1.601

Requirement: 3 Sales Variable expenses Contribution margin Fixed expenses Net operating Income Total 344448 198720 145728 54000 91728 Per Unit 10.40 6.00 4.400 Requirement: 4 Sales Variable expenses Contribution margin Fixed expenses Net operating Income Total Per Unit 320760 9.90 197640 6.10 1231201 3.80 47000 76120