Exercise 5-13 Using a Contribution Format Income Statement [LO5-1, LO5-4] Miller

Question

Exercise 5-13 Using a Contribution Format Income Statement [LO5-1, LO5-4] Miller Company's most recent contribution format income statement is shown below Total 128,000 4.00 96,000 $3.00 Per Unit $224,000 $7.00 Sales (32,000 units) Variable expenses Contribution margin Fixed expenses 45,000 Net operating income $ 51,000 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 17% Miller Company Contribution Income Statement Total Per Unit 0.00

Explanation / Answer

Answer to Part 1 Contribution Income Statement Total Per Unit Sales (32000*117%*7) 262080 7 Variable Expenses (32000*117%*4) 149760 4 Contribution Margin 112320 3 Fixed Expenses 45000 Net Operating Income 67320

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