Miller Company's contribution format income statement for the most recent month is shown below: Per Unit $6.00 3.60 $ 2.40 Sales (23,400 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 140,400 84,240 56,160 32,760 $ 23,400 Required: (Consider each of the four requirements independently): 1. Assume the sales volume increases by 4,212 units: a. What is the revised net operating income? b. What is the percent increase in unit sales? c. Using the most recent month's degree of operating leverage, what is the percent increase in net operating income? 2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 25%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 2 %?

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies wh…