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 (31,000 units)	$	279,000		$	9.00
Variable expenses		186,000			6.00
Contribution margin		93,000		$	3.00
Fixed expenses		50,000
Net operating income	$	43,000

Required:

(Consider each case independently):

1. What is the revised net operating income if unit sales increase by 11%?

2. What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of units sold increases by 17%?

3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $10,000, 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 30 cents per unit, and the number of units sold decreases by 13%?

1.	Net operating income
2.	Net operating income
3.	Net operating income
4.	Net operating income