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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

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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 (42,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: Total $ 336,000 210,000 Per Unit $ 8.00 126,000 5.00 $ 3.00 41,000 $ 85,000 (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%? 2. What is the revised net operating income if the selling price decreases by $1.30 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 $1.30 per unit, fixed expenses increase by $5,000, 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 20%, variable expenses increase by 40 cents per unit, and the number of units sold decreases by 6%? 1. Net operating income $ 98,860 2. Net operating income $ 45,394 3. Net operating income $ 127,376 4. Net operating income

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