Reference no: EM132738947
Whirly Corporation's contribution format income statement for the most recent month is shown below:
Total Per Unit
Sales (8,900 units) $275,900 $31.00
Variable expenses 169,100 19.00
Contribution margin 106,800 $12.00
Fixed expenses 54,700
Net operating income $52,100
Required:
(Consider each case independently):
Problem 1. What would be the revised net operating income per month if the sales volume increases by 80 units?
Problem 2. What would be the revised net operating income per month if the sales volume decreases by 80 units?
Problem 3. What would be the revised net operating income per month if the sales volume is 7,900 units?