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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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Accounting

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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: Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 70 units? 2. What would be the revised net operating income per month if the sales volume decreases by 70 units? 3. What would be the revised net operating income per month if the sales volume is 7,900 units? Exercise 5.6 (Algo) Break-Even Analysis [LO5-5] Mauro Products distributes a single product, a woven basket whose selling price is $20 per unit and whose variable expense is $18 per unit. The company's monthly fixed expense is $5,600. Required: 1 Calculate the company's break-even point in unit soles. 2. Colculate the company's break-even point in dollor sales. (Do not round intermediate calculations.) 3. If the company's fuxed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.)

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