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EXERCISE 6-13 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
EXERCISE 6-13 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 (20.000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $300.000 180,000 120,000 70,000 $ 50,000 Per Unit $15.00 9.00 $ 6.00 Page 260 Required: (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 $1.50 per unit and the number of units sold increases by 25%? 3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%? 4. What is the revised net operating income if the selling price per unit increases by 12%, variable expenses increase by 60 cents per unit. and the number of units sold decreases by 10%? EXERCISE 6-13 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: Required: (Consider each case independenty): 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 $1.50 per unit and the number of units sold increases by 25% ? 3. What is the revised net operating income if the selling price inereases by $1.50 per unit, fixed expenses increase by $20.000, and the number of units sold decreases by 5% ? 4. What is the revised net operating income if the selling price per unit increases by 12%, variable expense increase by 60 cents per unit. and the number of units sold decreases by 10%
EXERCISE 6-13 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 (20.000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $300.000 180,000 120,000 70,000 $ 50,000 Per Unit $15.00 9.00 $ 6.00 Page 260 Required: (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 $1.50 per unit and the number of units sold increases by 25%? 3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%? 4. What is the revised net operating income if the selling price per unit increases by 12%, variable expenses increase by 60 cents per unit. and the number of units sold decreases by 10%?
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