Miller Company\'e most recent contribution format Income slaliement is shown bel
ID: 2508701 • Letter: M
Question
Miller Company'e most recent contribution format Income slaliement is shown below Total Unit Sales (38,000 units) $304,000 $8.00 Variable expenses 190,000 5.00 Contribution margin 114,000 $3.00 Flxed expenses 42,000 Net operating income 72,000 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 placos.) 1.The number of units sold increases by 18%. Answer is complete and correct. Contribution Income Statement Total Per Unit 8.0 Sales Variable expenses Contibution margin134,520 Fixed expenses Net operating income 92,520 5 2. The solling price decreases by $1.20 per unit, and the number of units sold increases by 16%. 8 Answer is not complete. Contribution Income Statement Total Per Unit Sales 6.800 299,74 Variable expenses2204 Contribution margin Fixed expenses 005.00 1.8 79,3445 37,344Explanation / Answer
Miller Company
Contribution Income Statement
(*) Mention Net operating income
Total Per unit Sales [38,000+(38,000*16%)=44,080 units] 299,744 6.8 (8-1.2) Variable expenses 220,400 5 Contribution margin 79,344 1.8 Fixed expenses 42,000 Net operating income 37,344