Question
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
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 $ 210,000 84,000 Per Unit 126,000 $ 5.00 2.00 $ 3.00 46,000 $ 80,000 (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 15%? 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 22%? 3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 8%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 14%?
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