Miller Company’s contribution format income statement for the most recent month
ID: 340787 • Letter: M
Question
Miller Company’s contribution format income statement for the most recent month is shown below:
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 16%?
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 $8,000, and the number of units sold decreases by 6%?
4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 11%?
Total Per Unit Sales (34,000 units) $ 340,000 $ 10.00 Variable expenses 238,000 7.00 Contribution margin 102,000 $ 3.00 Fixed expenses 49,000 Net operating income $ 53,000Explanation / Answer
Answer:-1)-
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Miller Company Contribution Format Income statement Particulars Amount $ Sales (34000 units*116%)*$10 per unit 394400 Less:- Variable costs 39440 units*$7 per unit 276080 Contribution margin 118320 Less:- Fixed costs 49000 Net opreating income 69320