Question

In: Accounting

Whirly Corporation’s most recent income statement is shown below: Total Per Unit   Sales (7,200 units) $...

Whirly Corporation’s most recent income statement is shown below:

Total Per Unit
  Sales (7,200 units) $ 237,600 $ 33.00
  Variable expenses 136,800 19.00
  Contribution margin 100,800 $ 14.00
  Fixed expenses 55,400
  Net operating income $ 45,400


Required:

Prepare a new contribution format income statement under each of the following conditions (consider each case independently):

1.

The sales volume increases by 40 units.

     

2.

The sales volume decreases by 40 units.

     

3.

The sales volume is 6,200 units.

     

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