Question: Whirly Corporation's contribution format income statement for the most recent month is shown below:
|
Total |
Per Unit |
| Sales (7,400 units) |
229,400 |
31.00 |
| Variable expenses |
140,600 |
19.00 |
| Contribution margin |
88,800 |
12.00 |
| Fixed expenses |
55,000 |
|
| Net operating income |
33,800 |
|
Required: (Consider each case independently):
1. What would be the revised net operating income per month if the sales volume increases by 60 units?
2. What would be the revised net operating income per month if the sales volume decreases by 60 units?
3. What would be the revised net operating income per month if the sales volume is 6,400 units?