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Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,800 units) Variable expenses Contribution margin Fixed expenses Net operating

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Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,800 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 273,000 140,400 132,600 55,000 $ 77,600 Per Unit $ 35.00 18.00 $ 17.00 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units? 3. What would be the revised net operating income per month if the sales volume is 6,800 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income Last month when Holiday Creations, Inc., sold 42,000 units, total sales were $168,000, total variable expenses were $137,760, and fixed expenses were $37700. Required: 1. What is the company's contribution margin (CM) ratlo? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 675 units and total sales by $2,700? (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 Per Unit $ 60 39 $ 21 Percent of Sales 1000 65 350 Fixed expenses are $72,000 per month and the company is selling 4,200 units per month. Exercise 5-5 (Algo) Part 1 Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,600, the monthly sales volume increases by 100 units, and the total monthly sales increase by $6,000? 1.b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,600, the monthly sales volume increases by 100 units, and the total monthly sales increase by $6,000? (Do not round Intermediate calculations.) Net operating income by Fhea 1 Reg 18 >

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