A3 Exercises in Cost-Volume-Profit Relationships Upcraft Moving Company specializes in hauling heavy goods over long distances. The company's 7 hom urized budget data for next year are based on predicted total revenue miles of 500,000. At that of volume and at any level of volume between 300,000 and 700,000 revenue miles, the company's od costs are $50,000. The selling price and variable costs are as follows: Per Revenue-Mile Average selling price (revenue) Average variable expenses $2.00 1.60 1. Compute the budgeted net inconte Ignore income taxes 2. Management is trying to decide how various possible conditions or lecisions might affect net income Compute the new aet income for each of the fou owing changes. Consider each case independently 4. A 30% increase in sales price b. A 30% increase in reven... miles. c. A 30% increase in variable expenses. d. A 30% increase in fixed expenses. e. An average decrease in selling price of $.CS per revenue mile and a 15% increase in revenue miles. Refer to the original data, An average increase in selling price of $.01 and a 30% decrease in revenue miles. g. A 30% increase in fixed expenses in the form of more advertising and a 15% increase in fuce na Dustess Puunsimg, Ucuum w wagement accounung 14/1, nortgesunden Suosaveng/Durga revenue miles