# Question: miller companys contribution format income statement for the most recent...

###### Question details

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

Total | Per Unit | |||||

Sales (37,000 units) | $ | 259,000 | $ | 7.00 | ||

Variable expenses | 148,000 | 4.00 | ||||

Contribution margin | 111,000 | $ | 3.00 | |||

Fixed expenses | 47,000 | |||||

Net operating income | $ | 64,000 | ||||

**Required:**

(Consider each case independently):

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 $1.10 per unit and the number of units sold increases by 19%?

3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 7%?

4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 9%?

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

Total | Per Unit | |||||

Sales (37,000 units) | $ | 259,000 | $ | 7.00 | ||

Variable expenses | 148,000 | 4.00 | ||||

Contribution margin | 111,000 | $ | 3.00 | |||

Fixed expenses | 47,000 | |||||

Net operating income | $ | 64,000 | ||||

**Required:**

(Consider each case independently):

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 $1.10 per unit and the number of units sold increases by 19%?

3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 7%?

4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 9%?

1. NET INCOME

2. NET INCOME

3. NET INCOME

4. NET INCOME