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Preparing Contribution format income statement.
Whirly Corporation most recent income statement is shown below:
Total
Per Unit
Sales (10,000 units)
$350,000
$35.00
Less variable expenses
200,000
20.00
Contribution margin
150,000
$15.00
Less fixed expenses
135,000
Net operating income
$15,000
Prepare a new contribution format income statement under each of the following conditions (consider each case independently): 1. The sales volume increases by 100 units. 2. The sales volume decreases by 100 units. 3. The sales volume is 9,000 units.
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