Whirly Corporation’s contribution format income statement for the most recent month is shown below:
Total Per Unit
Sales (7,400 units) $ 229,400 $ 31.00
Variable expenses 148,000 20.00
Contribution margin 81,400 $ 11.00
Fixed expenses 55,600 Net operating income $ 25,800 Required:
(Consider each case independently):
1. What would be the revised net operating income per month if the sales volume increases by 90 units?
2. What would be the revised net operating income per month if the sales volume decreases by 90 units?
3. What would be the revised net operating income per month if the sales volume is 6,400 units?