Exercise 6-13 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 (41,000 units)	$	287,000		$	7.00
Variable expenses		164,000			4.00
Contribution margin		123,000		$	3.00
Fixed expenses		46,000
Net operating income	$	77,000

Required:

(Consider each case independently):

1. What is the revised net operating income if unit sales increase by 15%?

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 22%?

3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 4%?

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