Question

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 (7,700 units) $ 261,800 $ 34.00
Variable expenses 146,300 19.00
Contribution margin 115,500 $ 15.00
Fixed expenses 55,100
Net operating income $ 60,400

Required:

(Consider each case independently):

1. What would be the revised net operating income per month if the sales volume increases by 50 units?

2. What would be the revised net operating income per month if the sales volume decreases by 50 units?

3. What would be the revised net operating income per month if the sales volume is 6,700 units?

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