Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per unit, and Total Fixed Costs

Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO5-1, LO5.4) Miller Company's contribution format income statement for the most recent month is shown below. Sales (43,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 344,000 215.ee 129,000 42,000 $ 87,000 Per Unit $ 8.00 5.00 $ 3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 12%? 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 16%? 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 6%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 6%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income Miller Company's contribution format income statement for Sales (43,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 344,000 215,000 129,00 42,000 $ 87,000 Per Unit $ 8.00 5.00 $ 3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increa 2. What is the revised net operating income if the selling price 16%? 3. What is the revised net operating income if the selling price the number of units sold decreases by 6%? 4. What is the revised net operating income if the selling price unit, and the number of units sold decreases by 6%? 1. Net operating income 2. Net operating income Net operating income 4. Net operating income