1 Exercise 5-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income (L05-11 Whirly Corporation's contribution format income statement for the most recent month is shown below. pints eBook Sales (7,100 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 234,300 134,900 99,400 55,200 $ 44,200 Per Unit $ 33.00 19.00 $14.00 Hint Print References Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 100 units? 2. What would be the revised net operating income per month if the sales volume decreases by 100 units? 3. What would be the revised net operating income per month of the sales volume is 6,100 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 2 Exercise 5-4 (Algo) Computing and using the CM Ratio (LO5-3] nts Last month when Holiday Creations, Inc., sold 38,000 units, total sales were $152,000, total variable expenses were $118,560, and fixed expenses were $37,200. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 300 units and total sales by $1,200? (Do not round intermediate calculations.) eBook Print References 1. Contribution margin ratio 2. Estimated change in net operating income Requireu 11LLIURE Exercise 5-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO5-4) [The following information applies to the questions displayed below] 2 Data for Hermann Corporation are shown below. Selling price Variable expenses Contribution margin Per Unit $ 130 78 $52 Percent of Sales 100% 60 40% ook Fixed expenses are $86,000 per month and the company is selling 2,800 units per month rences Exercise 5-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by 59100 the monthly sales volume increases by 100 units, and the total monthly sales increase by $13,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Next > Dron O&launchUrl=http... a Sived 3 Fixed expenses are $86,000 per month and the company is selling 2,800 units per month. Part 1 of 2 Exercise 5-5 (Algo) Part 1 10 points Required: 1-0. How much will net operating income increase (decrease) per month of the monthly advertising budget increases by 59.100, the monthly sales volume increases by 100 units, and the total monthly sales increase by $13,000? 1-b. Should the advertising budget be increased? eBook Complete this question by entering your answers in the tabs below. Hint Reg 1A Reg 1B References How much will net operating income increase (decrease) per month if the monthly advertising budget increases by 9.100. the monthly sales volume increases by 100 units, and the total monthly sales increase by $13,000? (Do not found Intermediate calculations.) Net operating income Reg 18> Fixed expenses are $86,000 per month and the company is selling 2,800 units per month 012 Exercise 5-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by 59.100, the monthly sales volume increases by 100 units, and the total monthly sales increase by $13,000? 1-b. Should the advertising budget be increased? Book Complete this question by entering your answers in the tabs below. Hint Print Reg 1A Reg 1B erences Should the advertising budget be increased? OYes ONO