Question

Miller Company's most recent contribution format income statement is shown below: Sales (43,000 units) Variable expenses Total $387,000 258,000 Per Unit $9.00 6.00 Contribution margin Fixed expenses $3.00 129,000 48,000 Net operating income $ 81,000 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 12%. Miller Company Contribution Income Statement Total Per Unit 0.00 0

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

Answer 2 Part 1) 3 Miller Company Contribution Income Statement Total Per Unit 6 Sales (48160) 433440 7 Variable expenses 288960 8 Contribution Margin 144480 9 Fixed Expenses 48000 10 Net Operating Income 96480 11 12 Part 2) Miller Company 14 Contribution Income Statement 15 Total Per Unit 16 Sales (51600) 402480 17 Variable expenses 309600 18 Contribution Margin 92880 19 Fixed Expenses 48000 20 Net Operating Income 44880 21 13

22 Part 3) Miller Company Contribution Income Statement Total Per Unit 26 Sales (40420) 412284 27 Variable expenses 2425201 28 Contribution Margin 169764 29 Fixed Expenses (48000+10000) 58000 30 Net Operating Income 111764 34 32 Part 4) Miller Company Contribution Income Statement 35 Total Per Unit 36 Sales (38270) 413316 10.8 37 Variable expenses (6+.3) 241101 6.3 38 Contribution Margin 172215 39 Fixed Expenses (48000) 48000 40 Net Operating Income 124215