Whirly Corporation$’$s contribution format income statement for the most recent month is shown below:

Total Per Unit

Sales $(7,100$ units$)$ $ $241,400$ $ $34\mathrm{.}00$

Variable expenses $134,90019\mathrm{.}00$

Contribution margin $106,500$ $ $15\mathrm{.}00$

Fixed expenses $55,800$ 

Net operating income $ $50,700$ 

Required:

$($Consider each case independently$)$:

$1.$ What would be the revised net operating income per month if the sales volume increases by $50$ units?

$2.$ What would be the revised net operating income per month if the sales volume decreases by $50$ units?

$3.$ What would be the revised net operating income per month if the sales volume is $6,100$ units?

Answer rating: 100% (QA)

Analyzing Whirly Corporations Contribution Margin We can analyze the impact of changing sales volume ... View the full answer