Question
Exercise 6-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO6-1, LO6-4] Miller Companys contribution format income statement
Exercise 6-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO6-1, LO6-4] Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (40,000 units) $ 240,000 $ 6.00 Variable expenses 120,000 3.00 Contribution margin 120,000 $ 3.00 Fixed expenses 48,000 Net operating income $ 72,000 Required: (Consider each case independently):
1. What is the revised net operating income if unit sales increase by 13%?
2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 21%?
3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $8,000, and the number of units sold decreases by 4%?
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 5%?
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