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Miller company’s contribution format income statement for the most recent month is shown below: total per unit sales (20,000 units) $ 300,000 $ 15.00 variable expenses 180,000 9.00 contribution margin 120,000 $ 6.00 fixed expenses 70,000 net operating income $ 50,000 required: (consider each case independently): 1. what is the revised net operating income if unit sales increase by 15%? 2. what is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 25%? 3. what is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%? 4. what is the revised net operating income if the selling price per unit increases by 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by 10%?
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