Answer:
Answer is given below:
Explanation:
Answer-
1 Net operating income $63480
2 Net operating income $22968
3 Net operating income $73336
4 Net operating income $41400
Explanation-
Miller Company
Operating income
Particulars Amount $
Sales (32000 units*1.13)*$6 per unit 216960
Less:- Variable cost 36160 units*$3 per unit 108480
Contribution 108480
Less:- Fixed costs 45000
Net operating income 63480
Miller Company
Operating income
Particulars Amount $
Sales (32000 units*1.18)*($6 per unit-$1.20 per unit) 181248
Less:- Variable cost 37760 units*$3 per unit 113280
Contribution 67968
Less:- Fixed costs 45000
Net operating income 22968
Miller Company
Operating income
Particulars Amount $
Sales (32000 units*94%)*($6 per unit+$1.20 per unit) 216576
Less:- Variable cost 28200 units*$3 per unit 90240
Contribution 126336
Less:- Fixed costs (45000+8000) 53000
Net operating income 73336
Miller Company
Operating income
Particulars Amount $
Sales (32000 units*90%)*($6 per unit*1.10) 190080
Less:- Variable cost 28800 units*($3 per unit*1.20) 103680
Contribution 86400
Less:- Fixed costs 45000
Net operating income 41400
