Miller Company's most recent contribution format income statement is shown below:

Exercise 6-11 Using a Contribution Format Income Statement [LO1, LO4]

Miller Company's most recent contribution format income statement is shown below:

	Total	Per Unit
Sales (41,000 units)	$246,000	$6.00
Variable expenses	164,000	4.00
Contribution margin	82,000	$2.00
Fixed expenses	40,000
Net operating income	$42,000

 

Required:

Prepare a new contribution format income statement under each of the following conditions (consider each case independently) (Round per unit values to 2 decimal places and the rest to the nearest dollar amount. Input all amounts as positive values. Omit the "$" sign in your response):

(1)	The number of units sold increases by 19%.

	Total	Per Unit
Sales	$	$
Variable expenses
Contribution margin		$
Fixed expenses
Net operating income	$

(2)	The selling price decreases by $0.70 per unit, and the number of units sold increases by 17%.

	Total	Per Unit
Sales	$	$
Variable expenses
Contribution margin		$
Fixed expenses
Net operating income	$

(3)	The selling price increases by $0.30 per unit, fixed expenses increase by $5,000, and the number of units sold decreases by 4%.

	Total	Per Unit
Sales	$	$
Variable expenses
Contribution margin		$
Fixed expenses
Net operating income	$

(4)	The selling price increases by 10%, Variable expenses increase by 30 cents per unit, and the number of units sold decreases by 8%.

	Total	Per Unit
Sales	$	$
Variable expenses
Contribution margin		$
Fixed expenses
Net operating income	$

 

Explanation:

(1) Sales (41,000 units × 1.19 = 48,790 units)

(2) Sales (41,000 units × 1.17 = 47,970 units)

(3) Sales (41,000 units × 0.96 = 39,360 units)

(4) Sales (41,000 units × 0.92 = 37,720 units)