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

Whirly Corporations most recent income statement is shown below:

	Total		Per Unit
Sales (8,600 units)	$	275,200	$	32.00
Variable expenses		154,800		18.00
Contribution margin		120,400	$	14.00
Fixed expenses		55,100
Net operating income	$	65,300

Required:

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

1.

The sales volume increases by 60 units.

Part 2. The sales volume decreases by 60 units.

.Part3

The sales volume is 7,600 units.