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 (40,000 units) $ 360,000 per unit $ 9.00

Variable expenses 240,000 per unit $6.00

Contribution margin 120,000 per unit $ 3.00

Fixed expenses 46,000

Net operating income $ 74,000

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 $1.20 per unit and the number of units sold increases by 20%?

3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 3%?

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 7%?