Exercise 3-1 Preparing a Contribution Format Income Statement [LO3-1]

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

Total Per Unit Sales (7,400 units) $ 236,800 $ 32.00 Variable expenses 140,600 19.00 Contribution margin 96,200 $ 13.00 Fixed expenses 54,500 Net operating income $ 41,700

Required:

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

1. The sales volume increases by 70 units.

Whirly CorporationContribution Income StatementTotalPer Unit0$

0$

0

2. The sales volume decreases by 70 units.

Whirly CorporationContribution Income StatementTotalPer Unit0$

00

3.The sales volume is 6,400 units.

Whirly CorporationContribution Income StatementTotalPer Unit0$

0$

0