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1 Exercise 5-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income [LO5-1) Whirly Corporation's contribution format income statement for the most recent month is shown below. point Skipped Sales (7,400 units) Variable expenses Contribution margin Fixed expenses lect operating income Total $ 236,500 140,600 96,200 54,800 $ 41,400 Per Unit $ 32.00 19.00 $ 13.00 eBook Hint 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 6,400 units? Print C References 1 Revised net operating income 2. Revised net operating income 3. Revised net operating income Ch 5 Homework Saved 2 Exercise 5-4 (Algo) Computing and using the CM Ratio (LO5-3) boints Last month when Holiday Creations, Incorporated, sold 42,000 units, total sales were $168.000, total variable expenses were $122,640, and fixed expenses were $35 200, Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the companys net operating income if it can increase sales volume by 425 units and total sales by $1700? (Do not round intermediate calculations.) Book % Hint 1. Contribution margin ratio 2 Estimated change in net operating income Print References Saved 3 Exercise 5-6 (Algo) Break-Even Analysis (L05-5] Gints Mauro Products distributes a single product, a woven basket whose selling price is $24 per unt and whose variable expense is $17 per unit. The company's monthly fixed expense is $9,800. Required: 1. Calculate the company's break-even point in unit sales 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break even point in unit sales? In dollar sales? (Do not round intermediate calculations.) Book Hint baskets 0 0 1. Break-even point in unit sales 2. Break-even point in dollar sales 3. Break-even point in unit sales 3. Break-even point in dollar sales Print baskets References 4 Exercise 5-7 (Algo) Target Profit Analysis [LO5-6] 5 points Lin Corporation has a single product whose selling price is $136 per unit and whose variable expense

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