Question: Exercise 6-1 (Static) The Effect of Changes in Sales Volume on Net Operating Income (LO6-1) Whirly Corporation's contribution format income statement for the most
Exercise 6-1 (Static) The Effect of Changes in Sales Volume on Net Operating Income (LO6-1) Whirly Corporation's contribution format income statement for the most recent month is shown below. Sales (10,000 units) Variable expenses Total $ 350,000 200,000 Contribution margin 150,000 Per Unit $ 35.00 20.00 $ 15.00 Fixed expenses 135,000 Net operating income $ 15,000 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 100 units? 2. What would be the revised net operating income per month if the sales volume decreases by 100 units? 3. What would be the revised net operating income per month if the sales volume is 9,000 units? 1. Revised net operating income 2. Revised net operating income 3 Revised net operating income
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