Miller Company\'s most recent contribution format income statement is shown belo

Question

Miller Company's most recent contribution format income statement is shown below: er Sales (42,000 units) Variable expenses $420,000 $10.00 294,000 7.00 126,000 $3.00 Contribution margin Fixed expenses 49,000 Net operating income $77,000 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 16%. Miller Company Contribution Income Statement Total Per Unit Sales Variable expenses Contribution margin Fixed expenses Net operating income 487,200 $ 98,280 388,920 $ 10.00 7.00 3.00 $388,920

Explanation / Answer

Req 1 Total Per unit Sales 46200 units 462000 10.00 Variable cost 323400 7.00 Contribution margin 138600 3.00 Fixed expense 49,000 Net operating income 89,600 Req 2: Total Per unit Sales 49980 units 429828 8.60 Variable cost 349860 7.00 Contribution margin 79968 1.60 Fixed expense 49,000 Net operating income 30,968 Req 3: Total Per unit Sales 39900 units 454860 11.40 Variable cost 279300 7.00 Contribution margin 175560 4.40 Fixed expense 57,000 Net operating income 118,560 Req 4: Total Per unit Sales 39900 units 438900 11.00 Variable cost 291270 7.30 Contribution margin 147630 3.70 Fixed expense 49,000 Net operating income 98,630

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