Exercise 6-13 (Static) 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: Per Unit $ 15.00 9.00 $ 6.00 Sales (20,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 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 $1.50 per unit and the number of units sold increases by 25%? Total $ 300,000 180,000 120,000 70,000 $ 50,000 3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $20,000, 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 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by 10%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income $ 6

Exercise 6-13 (Static) 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: 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 $1.50 per unit and the number of units sold increases by 25% ? 3. What is the revised net operating income if the selling price increases by $1.50 per unit, foxed expenses increase by $20,000, 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 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by 10%