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Exercise 6-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income [LOE Whirly Corporation's contribution format income statement for the most recent
Exercise 6-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income [LOE Whirly Corporation's contribution format income statement for the most recent month is shown below: Total $ 219,000 131,400 Sales (7,300 units) Variable expenses Contribution margin Fixed expenses Net operating income Per Unit $ 30.00 18.00 $ 12.00 87,600 55,100 $ 32,500 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 6,300 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 3 Required information Exercise 6-5 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Volume (LO6-4) [The following information applies to the questions displayed below) Part 1 of 2 Data for Hermann Corporation are shown below: 0.75 points Selling price Variable expenses Contribution margin Percent Per Unit of Sales $ 110 100% 77 70 $ 33 30% eBook Fixed expenses are $82,000 per month and the company is selling 3,500 units per month Hint Exercise 6-5 (Algo) Part 1 Print o Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,70 monthly sales volume increases by 100 units, and the total monthly sales increase by $11,000? 1-b. Should the advertising budget be increased? References Complete this question by entering your answers in the tabs below. Req 1A Req 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,700, the monthly sales volume increases by 100 units, and the total monthly sales increase by $11,000? (Do not round intermediate calculations.) Net operating income Rega Req 1B >
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