please answer question 1 & 3.1-3.3

1 Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (8,300 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 282, 280 157,700 124,500 55,400 $ 69,100 Per Unit $ 34.00 19.00 $ 15.00 eBook Hint Required: (Consider each case independently) Print 1. What would be the revised net operating income per month if the sales volume increases by 100 units? 2. What would be the revised net operating income per month if the sales volume decreases by 100 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 $ 54,500 3 Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high totaling $15.00 per ball, of which 60% is direct labor cost. Last year, the company sold 38,000 of these balls, with the following results $ eBook Sales (18,eee balls) variable expenses Contribution margin Fixed expenses Net operating income 950,000 570.ee 380,000 264,000 116,000 Print 5 Required: 1. Compute (a) last year's CM ratio and the break-even point in balls, and (b) the degree of operating leverage at last year's sales level 2. Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $3.00 per ball. If this change takes place and the selling price per ball remains constant at $25.00, what will be next year's CM ratio and the break-even point in balls? 3. Refer to the data in (2) above. If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, $116,000, as last year? 4. Refer again to the data in (2) above. The president feels that the company must raise the selling prce of its basketballs. If Northwood Company wants to maintain the same CM ratio os last year (as computed in requirement to what selling price per ball must it charge next year to cover the increased labor costs? 5 Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plant would slash variable expenses per ball by 40.00% but it would cause fixed expenses per year to double. If the new plant is built, what would be the company's new CM ratio and new break-even point in balls? 6. Refer to the data in (5) above, a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $116.000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 38.000 balls the same number as sold last yean Prepare a contribution format income statement and compute the degree of operating leverage Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg Req Regs Reg 6 Reg 6 Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $3.00 per ball. If this change takes place and the selling price per ball remains constant at $25.00, what will be next year's CM ratio and the break-even point in balls? (Round "CM Ratio" to 2 decimal places and Unit sales to break even to the nearest whole unit.) CM Ratio Un es to break even balls