miller company s most recent contribution format 275230

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):

1. The number of units sold increases by 15%.

2. The selling price decreases by $1.50 per unit, and the number of units sold increases by 25%.

3. The selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%.

4. The selling price increases by 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by10%.