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Exercise 6-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income (L06-1)...

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Accounting

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Exercise 6-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income (L06-1) Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (8,600 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 258,000 172,000 86,000 55,200 $ 30,800 Per Unit $ 30.00 20.00 $ 10.00 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 7,600 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income

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