HW LO 31 33 EXERCISE 3-1 Preparing a Contribution Format Income Statement |L03-11 Whirly Corporation's most recent income statement is shown below: Sales (10,000 units Variable expenses Contribution margin Pored expenses Net operating income Total $350,000 200.000 150.000 135.000 $ 15,000 Per Unit $35.00 20.00 $15.00 Required: Prepare a new contribution format income statement under each of the following conditions (con sider cach case independently): 1. The sales volume increases by 100 units. 2. The sales volume decreases by 100 units. 3. The sales volume is 9,000 units. EXERCISE 3-2 Prepare a Cost-Volume-Profit (CVP) Graph |L03-21 Karlik Enterprises distributes a single product whose selling price is $24 and whose variable expense is $18 per unit. The company's monthly fixed expense is $24,000. Required: 1. Prepare a cost-volume-profit graph for the company up to a sales level of 8,000 units 2. Estimate the company's break-even point in unit sales using your cost-volume-profit graph. EXERCISE 3-3 Prepare a Profit Graph (L03-21 Jaffre Enterprises distributes a single product whose selling price is $16 and whose variable expense is SIl per unit. The company's fixed expense is $16,000 per month Required: 1. Prepare a profit graph for the company up to a sales level of 4,000 units. 2. Estimate the company's break-even point in unit sales using your profit graph. EXERCISE 3-4 Computing and using the CM Ratio (L03-31 Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total vari- able expenses were $120,000, and fixed expenses were $65,000 Required: 1. What is the company's contribution margin (CM) ratio? 2. Estimate the change in the company's net operating income if it were to increase its total sales by $1.000