A major disadvantage of planning (static) budgets is: A. The difficulty in developing such budgets due to the high cost of gathering the necessary information B. The cost behavior pattern of manufacturing overhead, which is primarily fixed C. That the variances between actual and budget on a static budget result from comparing actual costs at one level of activity to budgeted costs at a different level of activity D. Their length and complexity

Miller company’s most recent contribution format income statement 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: 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.) 1. the number of units sold increases by 15%.