Miller company’s contribution format income statement for the most recent month is shown below: total per unitsales (33,000 units) $330,000 $10.00 variable expenses $231,000 $7.00contribution margin 99,000 $3.00 fixed expenses 50,000 net operating income $49,000 required: (consider each case independently): 1. what is the revised net operating income if unit sales increase by 13%? 2. what is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 24%? 3. what is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 4%? 4. what is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 12%?

Instructions are listed below.

Explanation:

Giving the following information:

Sales (33,000 units for $10)= $330,000

Variable expenses $231,000 ($7.00)

Contribution margin 99,000 ($3.00)

Fixed expenses 50,000

Net operating income $49,000

1) Increase in sales= 13%

Income= (33,000*1.13)*$3 - 50,000= $61,870

2) Price= $8.8

Units sale= 33,000*1.24= 40,920

Income= (8.8 - 7)*40,920 - 50,000= $23,656

3) Price= 11.2

Sales= 33,000*0.96= 31,680

Fixed costs= 57,000

Income= (11.2 - 7)*31,680 - 57,000= $76,056

4) Price= 11

Variable cost= 7.3

Sales= 33,000*0.88= 29,040

Income= (11-7.3)*29,040 - 50,000= $57,448

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explanation:

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- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.