Question: Exercise 5-13 (Algo) Changes in Selling Price, Unit Sales, Variable Cost per Unit, and Total Fixed Costs [LO5-2, LO5-3, LO5-7] Miller Company's contribution format income
Exercise 5-13 (Algo) Changes in Selling Price, Unit Sales, Variable Cost per Unit, and Total Fixed Costs [LO5-2, LO5-3, LO5-7] Miller Company's contribution format income statement for the most recent month is shown below: Required: (Consider each of the four requirements independently): 1. Assume the sales volume increases by 3,888 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 $1.50 per unit and the number of units sold increases by 23% ? 3. What is the revised net operating income if the selling price inreases by $1.50 per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 3% ? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 10%
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