Question: Exercise 6-1 The Effect of Changes in Activity on Net Operating Income (L06-1] Whirly Corporation's contribution format income statement for the most recent month is
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Exercise 6-1 The Effect of Changes in Activity on Net Operating Income (L06-1] Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,300 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 233,600 138,700 94,900 54,700 $ 40,200 Per Unit $ 32.00 19.00 $ 13.00 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume Increases by 90 units? 2. What would be the revised net operating income per month if the sales volume decreases by 90 units? 3. What would be the revised net operating Income per month if the sales volume is 6,300 units? Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 2. What would be the revised net operating income per month if the sales volume decreases by 90 units? 3. What would be the revised net operating Income per month if the sales volume is 6,300 units? Answer is complete but not entirely correct. 1. s 40.7203 2. Revised net operating income Revised net operating income Revised net operating income $ 39.680 3. IS 27,200
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