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Exercise 6-1 The Effect of Changes in Activity on Net Operating Income [LO6-1]
Whirly Corporations contribution format income statement for the most recent month is shown below:
| | Total | | Per Unit |
| Sales (8,300 units) | $ | 257,300 | | $ | 31.00 | |
| Variable expenses | | 166,000 | | | 20.00 | |
| Contribution margin | | 91,300 | | $ | 11.00 | |
| Fixed expenses | | 54,400 | | | | |
| Net operating income | $ | 36,900 | | | | |
| |
Required:
(Consider each case independently):
1. What would be the revised net operating income per month if the sales volume increases by 40 units?
2. What would be the revised net operating income per month if the sales volume decreases by 40 units?
3. What would be the revised net operating income per month if the sales volume is 7,300 units?
| 1 | Revised net operating income | |
| 2 | Revised net operating income | |
| 3 | Revised net operating income | |
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