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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
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 (31,000 units) Variable expenses Total $186,000 Per Unit $6.00 93,000 3.00 Contribution margin 93,000 $3.00 Fixed expenses 42,000 Net operating income $ 51,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 16% ? 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 15%? 3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $6,000, 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 10 cents per unit, and the number of units sold decreases by 14% ? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income
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