Item11

2.14points

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Item11

Item 11 2.14 points

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

	Total			Per Unit
Sales (7,300 units)	$	219,000		$	30.00
Variable expenses		146,000			20.00
Contribution margin		73,000		$	10.00
Fixed expenses		55,500
Net operating income	$	17,500

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 6,300 units?