Question: Miller Company's most recent contribution format income statement is shown below: Total Per Unit Sales (31,000 units) $155,000 $5.00 Variable expenses 62,000 2.00 Contribution margin 93,000 $3.00 Fixed expenses 45,000 Net operating income $ 48,000
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 13%.
2. The selling price decreases by $1.20 per unit, and the number of units sold increases by 19%.
3. The selling price increases by $1.20 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 7%.
4. The selling price increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 10%.