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Exercise 5-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income [LO5-1] Whirly Corporation's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,500 units) Variable expenses $ 262,500 135,000 $35.00 18.00 Contribution margin 127,500 $ 17.00 Fixed expenses 54,600 $ 72,900 Net operating income Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume decreases by 50 units? 3. What would be the revised net operating income per month if the sales volume is 6,500 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income

Exercise 5-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income (LO5-1) Whirly Corporation's contribution format income statement for the most recent month is shown below. Sales (7,500 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 262,500 135,000 127,500 54.600 $ 72,900 Per Unit $35.00 18.00 $ 17.00 Required: (Consider each case independently 1. What would be the revised net operating income per month if the sales volume Increases by 50 units? 2. What would be the revised net operating income per month if the sales volume decreases by 50 units? 3. What would be the revised net operating income per month if the sales volume is 6,500 units? 1. Revised net operating income 2. Revised net operating income 3. Revised not operating incomo

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