Summarized budget data for next year are based on predicted total revenue miles of 800,000. At that level of volume, and at any level of volume between 700.000 and 900,000 revenue miles, the com pany's fixed costs are $110.000. The selling price and variable costs are Per Revenue Mile :

Average selling price (revenue) $1.50

Average variable expenses $1.30

Management is trying to decide how various possible conditions or decisions might affect net income, compute the new net income for each of the following changes, consider each case independently.

a) A 10% increase in sales price.

b) A 10% increase in revenue miles.

c) A 10% increase in variable expenses.

d) A 10% increase in fixed expenses.

e) An average decrease in selling price of $.03 per revenue mile and a 5% increase in revenue miles. Refer to the original data.