Exercise 5-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO5-1, LO5-4]

Miller Companys contribution format income statement for the most recent month is shown below:

	Total	Per Unit
Sales (44,000 units)	$ 352,000	$ 8.00
Variable expenses	220,000	5.00
Contribution margin	132,000	$ 3.00
Fixed expenses	48,000
Net operating income	$ 84,000

Required:

(Consider each case independently):

1. What is the revised net operating income if unit sales increase by 16%?

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 23%?

3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $9,000, 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 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 13%?