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 (35,000 units)	$	175,000		$	5.00
Variable expenses		70,000			2.00
Contribution margin		105,000		$	3.00
Fixed expenses		49,000
Net operating income	$	56,000

Required:

(Consider each case independently):

1. What is the revised net operating income if unit sales increase by 14%?

2. What is the revised net operating income if the selling price decreases by $1.40 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 $1.40 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 2%?

4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 13%?