Miller Company\'s most recent contribution format income statement is shown belo
ID: 2413925 • Letter: M
Question
Miller Company's most recent contribution format income statement is shown below Total Per Unit $310,000 $10.00 Sales (31.000 units) Variable expenses Contribution margin Fxed expenses Net operating income 3.00 93,000 45,000 $48,000 Required Prepare a new contribution format income statement under each of the following conditions (consider each case independently): (Do not round intermediate calculations. Round your "Per unit" answers to 2 decimal places.) I. The number of units sold increases by 17%. Miller Company Contribution Income Statement Total Per Unit 0.00 2. The selling price decreases by $1.40 per unit, and the number of units sold increases by 21%. Miller Company Total Per Unit 0.00Explanation / Answer
Total PU Sales 310000 10.00 Variable Ex 217000 7.00 Contribution Margin 93000 3.00 Less: Fixed Costs 45000 NOI 48000 1 Miller Company Contribution Income Statement Total PU Current Units 31000 Sales 362700 10.00 Increase 17% 5270 Variable Ex 253890 7.00 New Sales 36270 Contribution Margin 108810 3.00 Less: Fixed Costs 45000 NOI 63810 2 Miller Company Contribution Income Statement Total PU Current Units 31000 Sales 322586 8.60 Increase 21% 6510 Variable Ex 262570 7.00 New Sales 37510 Contribution Margin 60016 1.60 Less: Fixed Costs 45000 Current SP 10.00 NOI 15016 Less Decrease 1.40 New Sales 8.60 3 Miller Company Contribution Income Statement Total PU Current Units 31000 Sales 342798 11.40 Deccrease 3% 930 Variable Ex 210490 7.00 New Sales 30070 Contribution Margin 132308 4.40 Less: Fixed Costs 55000 (10000+) Current SP 10.00 NOI 77308 Increase 1.40 New Sales 11.40 4 Miller Company Contribution Income Statement Total PU Current Units 31000 Sales 317130 11.00 Deccrease 7% 2170 Variable Ex 204693 7.10 (Plus 0.10) New Sales 28830 Contribution Margin 112437 3.90 Less: Fixed Costs 45000 Current SP 10.00 NOI 67437 Increase by 10% 1.00 New Sales 11.00