a.)

b.)

c.)

Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (8,800 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 281,600 158, 400 123,200 55,700 $ 67,500 Per Unit $ 32.00 18.00 $ 14.00 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 60 units? 2. What would be the revised net operating income per month if the sales volume decreases by 60 units? 3. What would be the revised net operating income per month if the sales volume is 7,800 units? Answer is complete but not entirely correct. 1. $ 60,140 2. Revised net operating income Revised net operating income Revised net operating income $ 46,100 % 3. $ 58,060 Last month when Holiday Creations, Inc., sold 39,000 units, total sales were $288,000, total variable expenses were $216,000, and fixed expenses were $38,000. 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 total sales by $3,000? (Do not round intermediate calculations.) 1 % 1. Contribution margin ratio 2. Estimated change in net operating income Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 120 78 $ 42 Percent of Sales 100% 65 35% Fixed expenses are $84,000 per month and the company is selling 2,600 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900 and monthly sales increase by $18,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900 and monthly sales increase by $18,000? (Round any unit calculations up to the nearest whole unit.) Net operating income by