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Exercise 5-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income (LO5-1]...

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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: Sales (7,500 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 255,000 135,000 120,000 55,400 $ 64,600 Per Unit $ 34.00 18.00 $ 16.00 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 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

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