Miller Company’s most recent contribution format income statement is shown below:
Total Per Unit
Sales (40,000 units) $240,000 $6.00
Variable expenses 120,000 3.00
Contribution margin 120,000 $3.00
Fixed expenses 47,000
Net operating income $73,000
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%.
2. The selling price decreases by $1.40 per unit, and the number of units sold increases by 16%.
3. The selling price increases by $1.40 per unit, fixed expenses increase by $5,000, and the number of units sold decreases by 8%.
4. The selling price increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 13%.