Reference no: EM133006543

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

                                                  Total              Per Unit
Sales (8,800 units)           $ 290,400             $ 33.00
Variable expenses             158,400              18.00
Contribution margin           132,000              $ 15.00
Fixed expenses 55,500
Net operating income $ 76,500

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 7,800 units?