Question

how do you find net income for these 4?

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 (39,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 312,000 195,000 117,000 44,000 $ 73,000 Per Unit $8.00 5.00 $3.00 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 $1.10 per unit and the number of units sold increases by 23%? 3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 3%? 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 6%? 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income

Answer 1

1
	Total	Per unit
Sales(46410 units)	371280	8.00
Variable expenses	232050	5.00
Contribution margin	139230	3.00
Fixed expenses	44000
Net Operating income	95230
2
	Total	Per unit
Sales(47970 units)	330993	6.90
Variable expenses	239850	5.00
Contribution margin	91143	1.90
Fixed expenses	44000
Net Operating income	47143
3
Sales(37830 units)	344253	9.10
Variable expenses	189150	5.00
Contribution margin	155103	4.10
Fixed expenses	53000
Net Operating income	102103
4
	Total	Per unit
Sales(36660 units)	351936	9.60
Variable expenses	190632	5.20
Contribution margin	161304	4.40
Fixed expenses	44000
Net Operating income	117304