Question

Miller Company’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (44,000 units) $ 440,000 $ 10.00 Variable expenses 308,000 7.00 Contribution margin 132,000 $ 3.00 Fixed expenses 40,000 Net operating income $ 92,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%?2. 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 19%?

Answer 1

Answer:

The revised net operating income if unit sales increased by 11% is $ 106,520.00  

The revised operating income if selling price decreases by $1.3 is $34,800.00

Explanation:

The detailed computations concerning the above answers can be found in the attached spreadsheet.