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Exercise 5-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income [LOB-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 [LOB-1] Whirly Corporation's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,600 units) $ 258,400 $ 34.00 Variable expenses 144,400 19.00 Contribution margin 114,000 $ 15.00 Fixed expenses 54,000 Net operating income $ 60,000 ' Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume decreases by 50 units? 3. What would be the revised net operating income per month if the sales volume is 6,600 units? a Revised net operating income _ Revised net operating income _ Revised net operating income _
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