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

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 $ 256,000 152,000 104,000 54,100 $ 49,900 Per Unit $ 32.00 19.00 $ 13.00 Sales (8,680 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently 1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume decreases by 50 units? 3. What would be the revised net operating income per month if the sales volume is 7000 units? 1 Revised net operating income 2 Revised net operating income 3 Revised net operating income

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