Exercise 6-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income (LO6-1) Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,100 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 227,200 142, cee 85,200 54,900 $ 38,300 Per Unit $ 32.00 20.00 $ 12.00 Required: (Consider each case Independently): 1. What would be the revised net operating Income per month if the sales volume increases by 90 units? 2. What would be the revised net operating Income per month if the sales volume decreases by 90 units? 3. What would be the revised net operating income per month if the sales volume is 6,100 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income Exercise 6-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs (LO6-1, LO6-4) Miller Company's contribution format income statement for the most recent month is shown below. Sales (38,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 342,000 228,000 114,000 45,000 $ 69,000 Per Unit $ 9.00 6.00 $ 3.00 Required: (Consider each case independentlyy: 1. What is the revised net operating income if unit sales increase by 17%? 2. What is the revised net operating Income if the selling price decreases by $1.40 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 $1.40 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 3%? 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 8%? $ 88,380 1. Not operating income 2. Net operating income 3. Net operating income 4. Net operating income Exercise 6-6 (Algo) Break-Even Analysis [LO6-5] Mauro Products distributes a single product, a woven basket whose selling price is $23 per unit and whose variable expense is $20 per unit. The company's monthly fixed expense is $6,000. Required: 1. Calculate 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 calculations.) 1. Break-even point in unit sales 2. Break-even point in dollar sales 3 Break-even point in unit sales 3. Break even point in dollar sales $ 2,000 baskets 46,153 2,200 baskets 50,789 $ Exercise 6-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income (LO6-1) Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,100 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 227,200 142, cee 85,200 54,900 $ 38,300 Per Unit $ 32.00 20.00 $ 12.00 Required: (Consider each case Independently): 1. What would be the revised net operating Income per month if the sales volume increases by 90 units? 2. What would be the revised net operating Income per month if the sales volume decreases by 90 units? 3. What would be the revised net operating income per month if the sales volume is 6,100 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income Exercise 6-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs (LO6-1, LO6-4) Miller Company's contribution format income statement for the most recent month is shown below. Sales (38,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 342,000 228,000 114,000 45,000 $ 69,000 Per Unit $ 9.00 6.00 $ 3.00 Required: (Consider each case independentlyy: 1. What is the revised net operating income if unit sales increase by 17%? 2. What is the revised net operating Income if the selling price decreases by $1.40 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 $1.40 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 3%? 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 8%? $ 88,380 1. Not operating income 2. Net operating income 3. Net operating income 4. Net operating income Exercise 6-6 (Algo) Break-Even Analysis [LO6-5] Mauro Products distributes a single product, a woven basket whose selling price is $23 per unit and whose variable expense is $20 per unit. The company's monthly fixed expense is $6,000. Required: 1. Calculate 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 calculations.) 1. Break-even point in unit sales 2. Break-even point in dollar sales 3 Break-even point in unit sales 3. Break even point in dollar sales $ 2,000 baskets 46,153 2,200 baskets 50,789 $