Exercise 6-13 (Algo) 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 $ 195,000 78,000 117,000 49,000 $ 68,000 Sales (39,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): Per Unit $5.00 2.00 $ 3.00 1. What is the revised net operating income if unit sales increase by 12%? 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 $10,000, 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 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 7%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Exercise 6-13 (Algo) 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
$ 195,000
78,000
117,000
49,000
$ 68,000
Sales (39,000 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Required:
(Consider each case independently):
Per Unit
$5.00
2.00
$ 3.00
1. What is the revised net operating income if unit sales increase by 12%?
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 $10,000, 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 20%, variable expenses increase by 20 cents per
unit, and the number of units sold decreases by 7%?
1. Net operating income
2. Net operating income
3. Net operating income
4. Net operating income
Transcribed Image Text:Exercise 6-13 (Algo) 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 $ 195,000 78,000 117,000 49,000 $ 68,000 Sales (39,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): Per Unit $5.00 2.00 $ 3.00 1. What is the revised net operating income if unit sales increase by 12%? 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 $10,000, 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 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 7%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income
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