Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO5-1, LO5-4]

Miller Companys contribution format income statement for the most recent month is shown below:

	Total			Per Unit
Sales (34,000 units)	$	272,000		$	8.00
Variable expenses		170,000			5.00
Contribution margin		102,000		$	3.00
Fixed expenses		42,000
Net operating income	$	60,000

Required:

(Consider each case independently):

1. What is the revised net operating income if unit sales increase by 17%?

2. What is the revised net operating income if the selling price decreases by $1.10 per unit and the number of units sold increases by 18%?

3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 5%?

4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 6%?

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: Total Per Unit $ 8.00 Sales (34,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 272,000 170,000 102,000 42,000 $ 60,000 5.00 $ 3.00 Required (Consider each case independently) 1. what is the revised net operating income if unit sales increase by 17%? 2. What is the revised net operating income if the selling price decreases by $1.10 per unit and the number of units sold increases by 18%? 3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 5%? 4, what is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 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