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In: Accounting

Miller Company’s contribution format income statement for the most recent month is shown below: Sales (37,000...

Miller Company’s contribution format income statement for the most recent month is shown below:

Sales (37,000 units) $ 259,000 $ 7.00
Variable expenses 148,000 4.00
Contribution margin 111,000 $ 3.00
Fixed expenses 42,000
Net operating income $ 69,000

Consider each case independently):

1. What is the revised net operating income if unit sales increase by 19%?

2. What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of units sold increases by 18%?

3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $8,000, and the number of units sold decreases by 3%?

4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 11%?

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