Exercise 5-1 The Effect of Changes in Activity 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 (7,200 units) $ 237,600 $ 33.00 Variable expenses 136,800 19.00 Contribution margin 100,800 $ 14.00 Fixed expenses 54,900 Net operating income $ 45,900 Required: (Consider each case independently) : 1. What would be the revised net operating income per month if the sales volume increases by 40 units? 2. What would be the revised net operating income per month if the sales volume decreases by 40 units? 3. What would be the revised net operating income per month if the sales volume is 6,200 units?
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Home » Business » Exercise 5-1 The Effect of Changes in Activity 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 (7,200 units) $ 237,600 $ 33.