Question

Miller Company's most recent contribution format income statement is shown below Total Per Unit 123,000 3.00 123,000 $3.00 44,000 $ 79,000 e Sales (41,000 units) $246,000 $6.00 Variable expenses Contribution margin Fixed expenses Net operating income 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 17%. Miller Company Contribution Income Statement Total Per Unit 2. The selling price decreases by $150 per unit, and the number of units sold increases by 22% Miller Company Contribution Income Statement Total Per Unit

Answer 1

Answer to Part 1 Total 287820 143910 143910 44000 99910 Per Unit Sales Variable Expenses Contribution Margin Fixed Expenses Net Operating Income 6 Unit Sold-41,000 + (41,000 * 17%-47,970 Units Answer to Part 2 Total 225090 150060 75030 44000 31030 Per Unit 4.5 Sales Variable Expenses Contribution Margin Fixed Expenses Net Operating Income 1.5 Selling price per Unit- $6.00- $1.50 $4.50 Unit Sold-41,000 + (41,000 * 22%)-50,020 Units

Answer to Part 3 Total 295200 118080 177120 53000 124120 Per Unit Sales Variable Expenses Contribution Margin Fixed Expenses Net Operating Income 7.5 4.5 Selling price per Unit- $6.00 $1.50 $7.50 Unit Sold-41,000-(41,000 * 4%-39,360 Units Fixed Expenses $44,000 $9,000 - $53,000 Answer to Part 4 Sales Variable Expenses Contribution Margin Fixed Expenses Net Operating Income Total 271584 124476 147108 44000 103108 Per Unit 7.2 3.3 3.9 Selling price per Unit $6.00+ ($6.00 * 20%-$7.20 Unit Sold-41,000-(41,000 * 8%)-37,720 Units Variable Expenses per Unit $3.00 ($3.00 * 1096) $3.30