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Whirly Corporations contribution format income statement for the most recent month is shown below: Total Sales (8,800 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 290,400 167,200 123,200 55,500 $ 67,700 Per Unit $ 33.00 19.00 $ 14.00 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 7,800 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income

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1) if sales volume increases by 100 units 3) if sales volume is 7800 so units- 8900 i.e. (8800+100) so units 7800 Total Per unit Total Per unit Sales (8700) 293,700.00 (8900 33) 169,100.00 8900 19 124,600.00 Sales (8700) 257,400.00 (7800 33) 148,200.00 7800 19 109,200.00 55,500.00 53,700.00 <revised income Less: Variable Expenses 19 Less: Variable Expenses 19 Less: Fixed Expenses Net Operating income 55,500.00 69,100.00 <<revised income Less: Fixed Expenses Net Operating income Imp Note: Fixed expenses will be intact irrespective of changes in sales volume Reveised net operating income: Particulars 1) if sales volume increases by 100 units 2) if sales volume decreases by 100 units 3) if sales volume is 7800 Because they are not affected by sales volume Amount 69,100.00 66,300.00 53,700.00 2) if sales volume decreases by 100 units so units= 8700 i.e. (8800-100) Total Per unit Sales (8700) 287,100.00 (8700 33) 165,300.00 8700 19 121,800.00 Less: Variable Expenses 19 Less: Fixed Expenses Net Operating income 55,500.00 66,300.00 <<revised income

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