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 (8,300 units)	$	257,300		$	31.00
Variable expenses		166,000			20.00
Contribution margin		91,300		$	11.00
Fixed expenses		54,400
Net operating income	$	36,900

Required:

(Consider each case independently):

1. What would be the revised net operating income per month if the sales volume increases by 40 units?

2. What would be the revised net operating income per month if the sales volume decreases by 40 units?

3. What would be the revised net operating income per month if the sales volume is 7,300 units?

1	Revised net operating income
2	Revised net operating income
3	Revised net operating income