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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 100 units? 2. What would be the revised net operating income per month if the sales volume decreases by 100 units? 3. What would be the revised net operating income per month if the sales volume is 7,300 units? Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. Required: -a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,500, the nonthly sales volume increases by 100 units, and the total monthly sales increase by $10,000 ? -b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,500, the monthly sales volume increases by 100 units, and the total monthly sales increase by $10,000 ? (Do not round intermediate calculations.) Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality mponents that increase the variable expense by $3 per unit and increase unit sales by 15%. b. Should the higher-quality components be used? Answer is not complete. Complete this question by entering your answers in the tabs below. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higherquality components that increase the variable expense by $3 per unit and increase unit sales by 15%. Mauro Products distributes a single product, a woven basket whose selling price is $12 per unit and whose variable expense is $9 per unit. The company's monthly fixed expense is $4,200. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.) Lin Corporation has a single product whose selling price is $136 per unit and whose variable expense is $68 per unit. The company's monthly fixed expense is $32,400. Required: 1. Calculate the unit sales needed to attain a target profit of $5,000. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $8,400. (Round your intermediate calculations to the nearest whole number.) Required: 1. What is the company's margin of safety? (Do not round intermediate calculations.) 2. What is the company's margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. 1234 should be entered as 12.34).) What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 8% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 8% increase in unit sales. Complete this question by entering your answers in the tabs below. What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $50 per unit. Variable expenses are $32 per stove, and fixed expenses associated with the stove total $108,000 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.) 3. At present, the company is selling 8,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. 4. Refer to the data in (3) above. How many stoves would have to be sold at the new selling price to attain a target profit of $35,000 per month? Complete this question by entering your answers in the tabs below. What is the break-even point in unit sales and in dollar sales? Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Fixed expenses total $183,750 per month. Required: 1. Prepare a contribution format income statement for the company as a whole. 2. What is the company's break-even point in dollar sales based on the current sales mix? 3. If sales increase by $100,000 a month, by how much would you expect the monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Prepare a contribution format income statement for the company as a whole. (Round your percentage answers to 2 decimal places (i.e. .1234 should be entered as 12.34).)

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