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use the work provided in the first three images to answer the 5 questions which are in the last image EXERCISE 6-13 EXERCISE 6-13 CHANGES

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EXERCISE 6-13 EXERCISE 6-13 CHANGES IN SELLING PRICE, SALES VOLUME, VARIABLE COST PER UNIT, AND TOTAL FIXED COSTS Miller Company's contribution format income statement for the most recent month is shown below: 1 What is the revised net operating income if unit sales increase by 15% ? UnitsaleIncreaseinunitsaleRevisedUnitsale=$15=15%=$15.00(1+0.15)=$17.25 The revised operating income would be calculated as follows: NewunitsalesNewtotalsalesCalcialationofnewcontributioamarginCalculationofrevisednetoperatingincome=20,000(1+0.15)=23,000=23,000units$17.25=$345,000=$345,000$160,000=$105,000=$165,000$70,000=$95,000 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% For case 2, there is a decrease in the selling price by $1.50 per unit and there is an increase in the number of units sold by 25%. To find revised operating Income (Net): CalculationofnewsellingpriceperunitCalculationofnewunitsalesCalculationofnewtotalsalesNewVariableExpense=$15.00$1.50=$13.50=20,000(1+0.25)=25,000=25,000$13.50=$337,500=25,000$9=$225,000 CalculaionofnewcontributionmarginCalculationofrevisednetoperatingincome=$337,500$225,000=$112,500=$112,500$70,000=$42,500 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% ? CalculationofnewsellingpriceperunitCalculationofnewunitsalesCalculationofNewFixedexpensesCalculationofnewtotalsalesCalculationofnewcontributionmarginCalculationofrevisednetoperatingincoene=$15,00+$1.50=$16.50=20,000(10.05)=19,000=$70,000+$20,000=$90,000=19,000$16.50=$313,500=$13,500$171,000=$142,500=$142,500($70,000+$20,000)=$52,500 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% ? Calculationofnewsellingpriceperunit=$15.00(1+0.12)=$16.80 Calculation of new variable expenses per unit =$9.00+$0.60 =$9.60 Calculationofnewunitsales=20,000(10.10)=18,000 Calculationofnewtotalsales=18,000$16.80=$302,400 Calculationofnewcontributionmargin=$302,400($9.6018,000)=$129,600 Calculationofrevisednetoperatingincome=$129,600$70,000=$59,600 Calculate the company's break even point in units. Round to a whole number. QUESTION 2 What is total contribution margin at the company's break even point? Your answer should be a number. QUESTION 3 Calculate the company's current degree of operating leverage. QUESTION 4 Calculate the percentage that variable costs represent in the company's cost structure. Round your answer to the nearest whole percent. QUESTION S If sales decrease by 10%, calculate the expected percentage decrease in net income. Express your anewer as a percent

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