Question

Miller Company's contribution format income statement for the most recent month is shown below 5 points Sales (31,000 units) Variable expenses Contribution margin Fixed expenses Net operating income TotalPer Unit $ 248,000 $ 8.00 155, eee 5.00 93,000 $ 3.60 45,000 $ 48,000 eBook Required: (Consider each case independently): Print References 1. What is the revised net operating income if unit sales increase by 17%? 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 24%? 3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 3%? 4. What is the revised net operating income if the selling price per unit increases by 20%. variable expenses increase by 40 cents per unit, and the number of units sold decreases by 13%? 1. Net operating income $ 2. Net operating income | $ 3. Net operating incomes 4. Net operating income 63,810 16,504 78,308

question 4

Answer 1

Contribution Margin Income Statement
	Total	Per Unit
Sales	258,912	9.6
Variable Expenses	145,638	5.4
Contribution Margin	113,274	4.2
Fixed Expenses	45,000
Net Operating Income	68,274
Operating income will be $68,274

B 1 Contribution Margin Income Statement 2 3 Sales 4 Variable Expenses 5 Contribution Margin 6 Fixed Expenses 7 Net Operating Income 8 Operating income will be $68,274 Total Per Unit =C3*31000*87% =8*120% =C4*31000*87% 5.4 =B3-B4 =C3-C4 45000 =B5-B6