Miller Companyās contribution format income statement for the most recent month is shown below:
TotalPer UnitSales (29,400 units)$ 176,400$ 6.00Variable expenses105,8403.60Contribution margin70,560$ 2.40Fixed expenses41,160 Net operating income$ 29,400
Required:
(Consider each of the four requirements independently):
Assume the sales volume increases by 4,998 units:
What is the revised net operating income?What is the percent increase in unit sales?Using the most recent monthās degree of operating leverage, what is the percent increase in net operating income?
What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 15%?
What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 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 8%?