Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (8,200 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 246,000 155,800 90,200 54,200 $ 36,000 Per Unit $ 30.00 19.00 $ 11.00 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 7,200 units? Last month when Holiday Creations, Inc., sold 45,000 units, total sales were $309,000, total variable expenses were $231,750, and fixed expenses were $39,300. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase total sales by $2,300? (Do not round Intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Pex Unit $135 81 Pergent of Sales 1005 60 40$ S 54 Fixed expenses are $87,000 per month and the company is selling 2,900 units per month Exercise 6-5 Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,200 and monthly sales increase by $20,250? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,200 ond monthly sales increase by $20,2507 Round by unit calculations up to the nearest whole unit. Netratina in me Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution mrgin Per Unit $135 81 $ 54 Percent of Sala 1005 60 403 Fixed expenses are $87,000 per month and the company is selling 2,900 units per month Exercise 6-5 Part 2 2-a. Refer to the original dota. How much will net operating income increase (decrease) per month if the company uses higher quality components that increase the variable expense by $5 per unit and increase unit sales by 20% 2.b. Should the higher-quality components be used? Complete this question by entering your answers in the tabs below. Roq 2A Reg 28 Refer to the original data. How much will net operating Income increase (decrease) per month if the company uses higher quality components that increase the variable expense by $5 per unit and increase unit sales by 20% Net operating income by Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $21 per unit. The company's monthly fixed expense is $20,300. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round Intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round Intermediate calculations.) baskets 1. Break-even point in unit sales 2. Break-even point in dollar sales 3. Break-even point in unit sales Break-even point in dollar sales baskets Karlik Enterprises distributes a single product whose selling price is $27 per unit and whose variable expense is $22 per unit. The company's monthly fixed expense is $24,000. Required: 2. Calculate the company's break-even point in unit sales. Unit sales to break aron units
