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Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 33.00 19.00 Sales (7,100 units) Variable expenses Contribution
Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 33.00 19.00 Sales (7,100 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 234,300 134,900 99,400 55,400 $ 44,000 $ 14.00 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 70 units? 2. What would be the revised net operating income per month if the sales volume decreases by 70 units? 3. What would be the revised net operating income per month if the sales volume is 6,100 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income Last month when Holiday Creations, Inc., sold 40,000 units, total sales were $288,000, total variable expenses were $239,040, and fixed expenses were $38,700. 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 $2,800? (Do not round intermediate calculations.) % 1. Contribution margin ratio 2. Estimated change in net operating income Mauro Products distributes a single product, a woven basket whose selling price is $23 per unit and whose variable expense is $20 per unit. The company's monthly fixed expense is $7,800. 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
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