254EXERCISE 6-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total FixedCosts LO6-1, LO6-4Miller Company's contribution format income statement for the most recent month is shown below:Sales (20,000 units) ..Variable expensesContribution marginFixed expenses.Net operating incomeRequired:(Consider each case independently):Chapter 63.4.Total$300,000180,000120,00070,000$ 50,000Per Unit1. 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 thenumber of units sold increases by 25%?What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expensesincrease by $20,000, and the number of units sold decreases by 5%?$15.009.00$6.00What is the revised net operating income if the selling price per unit increases by 12%, variableexpenses increase by 60 cents per unit, and the number of units sold decreases by 10%?

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FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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254
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 (20,000 units) ..
Variable expenses
Contribution margin
Fixed expenses.
Net operating income
Required:
(Consider each case independently):
Chapter 6
3.
4.
Total
$300,000
180,000
120,000
70,000
$ 50,000
Per Unit
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%?
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%?
$15.00
9.00
$6.00
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%?

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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%?

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 (20,000 units).
Variable expenses
Contribution margin
Fixed expenses.
Net operating income
Required:
(Consider each case independently):
Chapter 6
3.
4.
Total
$300,000
180,000
120,000
70,000
$50,000
Per Unit
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%?
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%?
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%?
$15.00
9.00
$6.00

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