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: Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 12% ? 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 16% ? 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 6% ? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 40 cents per unit, and the number of units sold decreases by 11% ? Exercise 5.4 (Algo) Computing and Using the CM Ratio [LO5-3] Last month when Holiday Creations, Incorporated, sold 37,000 units, total sales were $148,000, total variable expenses were $108,040, and fixed expenses were $36,400 Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 650 units and total sales by $2.600 ? (Do not round intermediate calculations.) Exercise 5.6 (Algo) Break-Even Analysis [LO5.5] Mauro Products distributes a single product, a woven basket whose selling price is $21 per unit and whose variable expense is $17 per unit. The company's monthly fixed expense is $7,200. Required: 1. Colculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculotions.) Exercise 5.7 (Algo) Target Profit Analysis [LO5-6] Lin Corporation has a single product whose selling price is $135 per unit and whose variable expense is $81 per unit. The company's monthly fixed expense is $23,700 Required: 1. Calculate the unit sales needed to attain a torget profit of $6,000. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $9,300. (Round your intermediate calculations to the nearest whole number.) Exercise 5-8 (Algo) Compute the Margin of Safety [LO5.7] Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Required: 1. What is the company's margin of safety? (Do not round intermediate calculations.) 2. What is the company's margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. 1234 should be entered as 12.34 ).) Exercise 5-9 (Algo) Compute and Use the Degree of Operating Leverage [LO5-8] Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 7% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 7% increase in unit sales. Complete this question by entering your answers in the tabs below. What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Exercise 5-9 (Algo) Compute and Use the Degree of Operating Leverage [LO5-8] Engberg Compony installs lawn sod in home yords. The company's most recent monthly contribution format income statement follows: Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operoting leveroge, estimate the impact on net operating income of a 7% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 7% increase in unit sales. Complete this question by entering your answers in the tabs below. Using the degree of operating leverage, estimate the impact on net operating income of a 7% increase in unit sales. (Round your intermediate calculations to 2 decimal places, Round your percentoge answer to 2 decimal places (1,i. 1234 should be entered as 12.34 ).) Engberg Company installs lawn sod in home yards. The companys most recent monthly contribution format income statement follows: Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operoting leverage, estimate the impact on net operating income of o 7% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 7% increase in unit sales. Complete this question by entering your answers in the tabs below. Construct a new contribution format income statement for the company assuming a 7% increase in unit sales. Exercise 5A-3 (Algo) Cost Behavior; High-Low Method [LO5-10] Hol Chong Transport, Limited, operates a fleet of delivery trucks in Singopore. The company has determined that if a truck is driven 138,000 kilometers during a year, the average operating cost is 14.8 cents per kilometec if a truck is driven only 92,000kilometers during o yeat, the average operating cost increoses to 18.6 cents per kilometer: Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. 2. Express the variable and fixed costs in the form Y=a+bX 3. If o truck were driven 115,000 kilometers during a year, whot total operating cost would you expect to be incurred? Complete this question by entering your answers in the tabs below. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fieet of trucks. (Do not round your intermediate calculations. Round the Veriable cost per kilometer to 3 decimal places.) Exercise 5A-3 (Algo) Cost Behavior; High-Low Method [LO5-10] Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The compony has determined that if a truck is driven 138,000 kilometers during a yeac, the average operating cost is 14.8 cents per kilometer. If a truck is driven only 92,000 kilometers during o year, the averoge operating cost increases to 18.6 cents per kilometer. Required: 1 Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fieet of trucks. 2. Express the variable and fixed costs in the form Y=a+bX 3. If a truck were driven 115,000 kilometers during a year, what total operating cost would you expect to be incurred? Complete this question by entering your answers in the tabs below, Express the variable and fixed costs in the form Y=a+bX. (Do not round your intermediate calculations. Round the variable cost per kilometer to 3 decimal placest) Exercise 5A-3 (Algo) Cost Behavior; High-Low Method [LO5-10] Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singopore. The company has determined that if a truck is driven 138,000 kilometers during a year, the average operating cost is 148 cents per kilometer. If a truck is driven only 92000kilometers during a year, the average operating cost increases to 18.6 cents per kilometer. Required: 1. Using the high-low method, estimote the variable operoting cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. 2. Express the variable and fixed costs in the form Y=a+bX 3. If o truck were driven 115,000 kilometers during a year, what total operating cost would you expect to be incurred? Complete this question by entering your answers in the tabs below. If a truck were driven 115,000 kilometers during a year, what total operating cost would you expect to be incurred? (Do not round intermediate calculations.)