Question

please answer all parts. Thanks!

Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,200 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 252,000 144,000 108,000 54,700 $ 53,300 Per Unit $35.00 20.00 $15.00 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 100 units? 2. What would be the revised net operating income per month if the sales volume decreases by 100 units? 3. What would be the revised net operating income per month if the sales volume is 6,200 units? 1. Revised net operating income Revised net operating income 3. Revised net operating income

Answer 1

Revised net operating income = (7200+100)*15 - 54,700 = 54,800

Revised net operating income = (7200-100)*15 - 54,700 = 51,800

Revised net operating income = (6200*15) - 54,700 = 38,300