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

	Total	Per Unit
Sales (8,300 units)	$ 282,200	$ 34.00
Variable expenses	157,700	19.00
Contribution margin	124,500	$ 15.00
Fixed expenses	54,900
Net operating income	$ 69,600

Required:

(Consider each case independently):

1a. What would be the revised net operating income per month if the sales volume increases by 40 units?

1b.. What would be the revised net operating income per month if the sales volume decreases by 40 units?

1c.. What would be the revised net operating income per month if the sales volume is 7,300 units?

2. Karlik Enterprises distributes a single product whose selling price is $27 per unit and whose variable expense is $19 per unit. The companys monthly fixed expense is $24,000.

Calculate the companys break-even point in unit sales.

Jaffre Enterprises distributes a single product whose selling price is $9 per unit and whose variable expense is $4 per unit. The companys fixed expense is $13,000 per month.

3. Calculate the companys break-even point in unit sales.

4. Last month when Holiday Creations, Incorporated, sold 42,000 units, total sales were $168,000, total variable expenses were $120,960, and fixed expenses were $39,400.

Required:

4a. What is the companys contribution margin (CM) ratio? %

4b. What is the estimated change in the companys net operating income if it can increase sales volume by 625 units and total sales by $2,500? (Do not round intermediate calculations.)