21

Exercise 5-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income (L05-1] Whirly Corporation's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,000 units) $ 217,000 $ 31.00 Variable expenses 140,000 20.00 Contribution margin 77,000 $ 11.00 Fixed expenses 54,700 Net operating income $ 22,300 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 70 units? 2. What would be the revised net operating income per month if the sales volume decreases by 70 units? 3. What would be the revised net operating income per month if the sales volume is 6,000 units? es $ 22,300 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income