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In: Accounting

Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per...

Whirly Corporation’s contribution format income statement for the most recent month is shown below:

Total Per Unit
Sales (7,900 units) $ 244,900 $ 31.00
Variable expenses 158,000 20.00
Contribution margin 86,900 $ 11.00
Fixed expenses 54,100
Net operating income $ 32,800

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 6,900 units?

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