BRIEF EXERCISE 6–1 Preparing a Contribution Format Income Statement [ LO1 ]

Whirly Corporation’s most recent income statement is shown below:

Total Per Unit Sales (10,000 units) ..................... $350,000 $35.00 Variable expenses ....................... 200,000 20.00 Contribution margin ..................... 150,000 $15.00 Fixed expenses ........................... 135,000 Net operating income .................. $ 15,000 Required:

Prepare a new contribution format income statement under each of the following conditions (consider each case independently):

1. The sales volume increases by 100 units.

2. The sales volume decreases by 100 units.

3. The sales volume is 9,000 units.