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

Whirly Corporations most recent income statement is shown below:

	Total		Per Unit
Sales (7,600 units)	$	250,800	$	33.00
Variable expenses		152,000		20.00
Contribution margin		98,800	$	13.00
Fixed expenses		55,100
Net operating income	$	43,700

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.

2.	The sales volume decreases by 50 units.

3.	The sales volume is 6,600 units.