Reference no: EM132990915

ABC Corporation's contribution format income statement for the most recent month is shown below:

                                                   Total             Per Unit

Sales (7,200 units)                $230,400         $32.00

Variable expenses                 136,800               19.00

Contribution margin                   93,600              $13.00

Fixed expenses 54,500

Net operating income$39,100

Required:

(Consider each case independently):

Problem 1. What would be the revised net operating income per month if the sales volume increases by 60 units?

Problem 2. What would be the revised net operating income per month if the sales volume decreases by 60 units?

Problem 3. What would be the revised net operating income per month if the sales volume is 6,200 units?