Miller Companys most recent contribution format income state

Miller Company\'s most recent contribution format income statement is shown below: Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently) (Do not round intermediate calculations. Roun your \"Per unit\" answers to 2 decimal places.) I. The number of units sold increases by 10%. 2. The selling price decreases by $1.10 per unit and the number of units sold increases by 19%

Solution

1)nUmber of units 35000*(1+.10)=38500 units

MILLER COMPANY

CONTRIBUTION INCOME STATEMENT

2)nUmber of units 35000*(1+.19)=41650 units

MILLER COMPANY

CONTRIBUTION INCOME STATEMENT

3)Number of units : 35000(1-.04)=33600

MILLER COMPANY

CONTRIBUTION INCOME STATEMENT

4)Number of units =35000(1-.08)=32200

MILLER COMPANY

CONTRIBUTION INCOME STATEMENT

MILLER COMPANY CONTRIBUTION INCOME STATEMENT
	Total	per unit
sales   [38500*8]	308000	8
less:variable expense [38500*5]	(192500)	(5)
contribution margin	115500	3
less:fixed cost	(43000)
net operating income	72500