Exercise 5-1 Preparing a Contribution Format Income Statement [LO5-1]

Whirly Corporations most recent income statement is shown below:

	Total		Per Unit
Sales (8,700 units)	$	287,100	$	33.00
Variable expenses		156,600		18.00
Contribution margin		130,500	$	15.00
Fixed expenses		55,500
Net operating income	$	75,000

Required:

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

1.	The sales volume increases by 30 units.

2.	The sales volume decreases by 30 units.

3.	The sales volume is 7,700 units.