In: Operations Management
Whirly Corporation’s most recent income statement is shown below: Total Per Unit Sales (9,000 units) $ 270,000 $ 30.00 Variable expenses 171,000 19.00 Contribution margin 99,000 $ 11.00 Fixed expenses 54,200 Net operating income $ 44,800 Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): 1. The sales volume increases by 90 units. 2. The sales volume decreases by 90 units. 3. The sales volume is 8,000 units.