Exercise 5-13 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		46,000
Net operating income	$	86,000

Required:

(Consider each case independently):

1. What is the revised net operating income if unit sales increase by 19%?

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 24%?

3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $7,000, 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 20 cents per unit, and the number of units sold decreases by 14%?