Question

Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,900 units) $ 293,700 $ 33.00 Variable expenses 169,100 19.00 Contribution margin 124,600 $ 14.00 Fixed expenses 55,000 Net operating income $ 69,600 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 2. What would be the revised net operating income per month if the sales volume decreases by 90 units? 3. What would be the revised net operating income per month if the sales volume is 7,900 units?

Answer 1