Exercise 6-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income (LO6-1) Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (8,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 264,000 144,000 120,000 54,900 $ 65, 100 Per Unit $ 33.00 18.00 $ 15.00 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 2. What would be the revised net operating income per month if the sales volume decreases by 90 units? 3. What would be the revised net operating income per month if the sales volume is 7.000 units? 1 Revised net operating income 2. Revised net operating income 3. Revised net operating income Exercise 6-8 (Algo) Compute the Margin of Safety (LO6-7] Molander Corporation is a distributor of a sun umbrella used at resort hotels, Data concerning the next month's budget appear below: Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month $ 23 $. 12 $ 9,900 1,050 Required: 1. What is the company's margin of safety? (Do not round intermediate calculations.) 2. What is the company's margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. 1234 should be entered as 12.34).) Answer is complete but not entirely correct. 1. Margin of safety (in dollars) 2. Margin of safety percentage $ 20,700 12 38