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Exercise 2-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total...

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Accounting

Exercise 2-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO2-1, LO2-4] Miller Companys contribution format income statement for the most recent month is shown below: Total Per Unit Sales (32,000 units) $ 320,000 $ 10.00 Variable expenses 224,000 7.00 Contribution margin 96,000 $ 3.00 Fixed expenses 50,000 Net operating income $ 46,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 19%? 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 16%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 7%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 8%?

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