Question: Exercise 6-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs (LO6-1, LO6-4] Miller Company's 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 Company's contribution format income statement for the most recent month is shown below. Sales (34,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 6.00 3.00 Total $204,000 Per Unit 102,000 102,000 $ 3.00 41,000 $ 61,000 Required: A (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 13%? 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 $7,000, and the number of units sold decreases by 7% ? 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 9% ? Answer is complete but not entirely correct. 1. Net operating iricome 38.420 O 2. Net operating income i 40,120 O 3. Net operating income 38,620 ( 4. Net operating income $ 30,940
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