Miller Company’s most recent contribution format income statement is shown below:
Total Per Unit
Sales (20,000 units) $300,000 $15.00
Variable expenses 180,000 9.00
Contribution margin 120,000 $6.00
Fixed expenses 70,000
Net operating income $50,000
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.)
a. The number of units sold increases by 15%
b. The selling price decreases by $1.50 per unit, and the number of units sold increases by 25%
c. The selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%
d. The selling price increases by 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by 10%.