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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

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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 most recent month is shown below: Total Sales (32,000 units) Variable expenses $ 192,000 96,000 Per Unit $ 6.00 Contribution margin 96,000 3.00 $ 3.00 Fixed expenses 42,000 Net operating income $ 54,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 17%? 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 18%? 3. What is the revised net operating income if the selling price increases by $1.10 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 20%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 6%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income

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