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?