Sales (20,000 units) Variable expenses Contribution margin... Fixed expenses... Net operating income Chapter 6 Required: (Consider each case independently): Total $300,000 180,000 120,000 70,000 $50,000 Per Unit $15.00 9.00 $6.00 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%? 3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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%?
Transcribed Image Text: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
Transcribed Image Text: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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