Return to ques 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: Per Unit $ 15.00 Sales (20,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $300,000 180,000 120,000 70,000 $ 50,000 $ 6.00 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 of 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%? Return Iconsider 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%? Answer is complete but not entirely correct. 1 $ 68,000 2 s 19.000 Net operating income Net operating income Net operating income Net operating income 3 $ 52 500 4 $ 59,600 [The following information applies to the questions displayed below) Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 135 81 $ 54 Percent of Sales 100x 60 40% Fixed expenses are $87,000 per month and the company is selling 2,900 units per month Exercise 6-5 Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9.200 and Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,200 and monthly sales increase by $20,250? 1-5. Should the advertising budget be increased? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1A Req 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,200 and monthly sales increase by $20,250? (Round any unit calculations up to the nearest whole unit.) Net operating income decreases by $ 13.920
