Miller Company's contribution format income statement for the most recent month is shown below: Total $ 246,000 123,000 123,000 Per Unit $6.00 3.00 $ 3.00 Sales (41,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): 44,000 $ 79,000 1. What is the revised net operating income if unit sales increase by 11%? 2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 19%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 2 %? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 13%? 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:
Per Unit
$6.00
3.00
$ 3.00
Sales (41,000 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Required:
(Consider each case independently):
Total
$ 246,000
123,000
123,000
44,000
$ 79,000
1. What is the revised net operating income if unit sales increase by 11%?
2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by
19%?
1. Net operating income
2. Net operating income
3. Net operating income
4. Net operating income
3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $7,000, and the
number of units sold decreases by 2%?
4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents per
unit, and the number of units sold decreases by 13%?
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: Per Unit $6.00 3.00 $ 3.00 Sales (41,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): Total $ 246,000 123,000 123,000 44,000 $ 79,000 1. What is the revised net operating income if unit sales increase by 11%? 2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 19%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 2%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 13%?
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