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Exercise 5-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO5-1, LO5-4] Miller Company's contribution format Income
Exercise 5-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO5-1, LO5-4] Miller Company's contribution format Income statement for the most recent month is shown below. Sales (30,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: Total $ 270,000 180,000 Per Unit $ 9.00 6.00 90,000 47,000 $ 3.00 $ 43,000 (Consider each case Independently): 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 $1.10 per unit and the number of units sold Increases by 19%? 3. What is the revised net operating Income if the selling price increases by $1.10 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 8% ? 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 6% ?
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