Exercise $5-13($Algo$)$ Changes in Selling Price, Unit Sales, Variable Cost per Unit, and Total Fixed Costs $[$LO$52,$ LO$5-3,$ LO$57]$

Miller Company$$s contribution format income statement for the most recent month is shown below:

Total Per Unit

Sales $(30,000$ units$)$ $ $270,000$ $ $9\mathrm{.}00$

Variable expenses $162,0005\mathrm{.}40$

Contribution margin $108,000$ $ $3\mathrm{.}60$

Fixed expenses $63,000$

Net operating income $ $45,000$

Required:

$($Consider each of the four requirements independently$)$:

Assume the sales volume increases by $4,800$ units:

What is the revised net operating income?

What is the percent increase in unit sales?

Using the most recent month$$s degree of operating leverage, what is the percent increase in net operating income?

What is the revised net operating income if the selling price decreases by $$1\mathrm{.}10$ per unit and the number of units sold increases by $19\%?$

What is the revised net operating income if the selling price increases by $$1\mathrm{.}10$ per unit, fixed expenses increase by $$6,000,$ and the number of units sold decreases by $4\%?$

What is the revised net operating income if the selling price per unit increases by $10\%,$ variable expenses increase by $10$ cents per unit, and the number of units sold decreases by $14\%?$

$1$a$.$ Net operating income $

$1$b$.$ Percent increase in unit sales $\%$

$1$c$.$ Percent increase in net operating income $\%$

$2.$ Net operating income $($loss$)$

$3.$ Net operating income

$4.$ Net operating income