Exercise 5-1 Preparing a Contribution Format Income Statement

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

Total Per Unit

Sales (8,100 units) $ 259,200 $ 32.00

Variable expenses 162,000 20.00

Contribution margin 97,200 $ 12.00

Fixed expenses 55,200

Net operating income $ 42,000

Required:

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

1.

The sales volume increases by 40 units.

2.

The sales volume decreases by 40 units.

3.

The sales volume is 7,100 units.