Question: Exercise 6-13 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 Changes in Selling Price, Sales Volume, Variable Cost per Unit,

Exercise 6-13 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: Total Sales (32,000 units) Variable expenses $ 224,000 Per Unit $7.00 128,000 Contribution margin Fixed expenses 96,000 47,000 4.00 $ 3.00 Net operating income $ 49,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 20%? 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 19%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $6,000, 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 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 6%? 1. Net operating income $ 66,200 2. Net operating income 3. Net operating income 4. Net operating income

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