Exercise 6-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income (L06-1] Whirly Corporation's contribution format Income statement for the most recent month is shown below: Sales (7,300 unita) Variable expenses Contribution margin Tixed expenses Het operating Income Total $ 240,900 130, 700 102,200 54,200 $48.000 Per Unit $ 33.00 19.00 14.00 Required: (Consider each case Independently 1. What would be the revised net operating income per month if the sales volume increases by 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 6,300 units? (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 6,300 units? 1. Revised not operating income 2. Revised net operating income 3. Revised net operating income Exercise 6-4 (Algo) Computing and using the CM Ratio [LO6-3) Last month when Holiday Creations, Incorporated, sold 36,000 units, total sales were $144,000, total variable expenses were $116,640, and fixed expenses were $39,600. 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 sales volume by 425 units and total sales by $1700? (Do not round Intermediate calculations.) 94 1. Contribution margin ratio 2 Estimated change in net operating income