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1 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

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1 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. eBook Sales (45,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $360,000 225.000 135,000 42,000 $ 93.000 Per Unit $ 8.00 5.00 $ 3.00 Hint Files Required: (Consider each case independently Print 1. What is the revised net operating income if unit sales increase by 18%? 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 18%? 3. What is the revised net operating income if the selling price increases by $150 per unit, fixed expenses increase by $9,000, and the 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 14%? References 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating Income Exercise 6-14 Break-Even and Target Profit Analysis [LO6-3, LO6-4, LO6-5, LO6-6] Lindon Company is the exclusive distributor for an automotive product that sells for $42.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $264,600 per year. The company plans to sell 24400 units this year. Required: 1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.) 2. What is the break-even point in unit sales and in dollar sales? 3. What amount of unit sales and dollar sales is required to attain a target profit of $138,600 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4.20 per unit. What is the company's new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $138,600? 1 Variable expense per unit 2. Break even point in units Break-even point in dollar sales 3. Unit sales needed to attain target profit Dollar sales needed to attain target profit 4. New break-even point in unit sales New break-even point in dollar sales Dollar sales needed to attain target profit

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