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: Total $ 240,000 152,000 88,000 54,100 $ 33,900 Per Unit $ 30.00 19.00 $ 11.00 Sales (8,000 units) Variable expenses Contribution margin Fixed expenses Net operating income ces 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 if the sales volume decreases by 70 units? 3. What would be the revised net operating income per month if the sales volume is 7,000 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income Exercise 6-4 Computing and using the CM Ratio (LO6-3] Last month when Holiday Creations, Inc., sold 43,000 units, total sales were $287,000, total variable expenses were $226,730, and fixed expenses were $38,800. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase total sales by $2,700? (Do not round Intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income