Exercise 6-1 The Effect of Changes in Activity on Net Operating Income [LO6-1]

Whirly Corporations contribution format income statement for the most recent month is shown below:

	Total			Per Unit
Sales (8,900 units)	$	302,600		$	34.00
Variable expenses		160,200			18.00
Contribution margin		142,400		$	16.00
Fixed expenses		55,300
Net operating income	$	87,100

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 7,900 units?