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

Whirly Corporations most recent income statement is shown below:

	Total		Per Unit
Sales (8,800 units)	$	272,800	$	31.00
Variable expenses		176,000		20.00
Contribution margin		96,800	$	11.00
Fixed expenses		55,000
Net operating income	$	41,800

Required:

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

1.	The sales volume increases by 50 units.
Activity:	Contribution income statement
	total /per unit

2.	The sales volume decreases by 50 units.
activity	contribution income statement
	total/ per unit

3.	The sales volume is 7,800 units.
activity	contribution income statement
	total per unit