Question: Exercise 6-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO6-1, LO6-4] Miller Companys contribution format income statement

Exercise 6-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO6-1, LO6-4] Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (42,000 units) $ 294,000 $ 7.00 Variable expenses 168,000 4.00 Contribution margin 126,000 $ 3.00 Fixed expenses 47,000 Net operating income $ 79,000 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 $1.30 per unit and the number of units sold increases by 21%?

3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $5,000, 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 10%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 10%?

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