E5-1

E5-4

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 (10,000 units) $350,000 $35.00 Variable expenses Contribution margin 50,000 $15.00 Fixed expenses Net operating income $ 15,000 200,000 20.00 135,000 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 9,000 units