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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
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 (8,800 units) $ 299,200 $ 34.00 Variable expenses 167,200 19.00 Contribution margin 132,000 $ 15-00 Fixed expenses 54,700 Net operating income 5 77,300 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? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
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