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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: Sales (37,000 units) Total $ 370,000 Variable expenses 259,000 Contribution margin 111,000 Fixed expenses 44,000 Net operating income $ 67,000 Required: Per Unit $10.00 7.00 $ 3.00 (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 $1.20 per unit and the number of units sold increases by 23%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $7,000, 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 10%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 15%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income

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