Question: Exercise 6-1 The Effect of Changes In Activity on Net Operating Income [LO6-1] Whirly Corporation's contribution format Income statement for the most recent month is
Exercise 6-1 The Effect of Changes In Activity on Net Operating Income [LO6-1] Whirly Corporation's contribution format Income statement for the most recent month is shown below. Total Sales (8,5ee units) Variable expenses Contribution margin Fixed expenses Net operating income $ 297,500 170,000 127,500 55,100 $ 72,480 Per Unit $ 35.00 20.00 $ 15.00 Required: (Consider each case Independently): 1. What would be the revised net operating Income per month If the sales volume Increases by 70 units? 2 What would be the revised net operating Income per month of the sales volume decreases by 70 units? 3. What would be the revised net operating Income per month If the sales volume is 7,500 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
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