Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,100 units) $ 227,200 $ 32.00 Variable expenses 134,900 19.00 Contribution margin 92,300 $ 13.00 Fixed expenses 54,800 Net operating income $ 37,500 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units? 3. What would be the revised net operating income per month if the sales volume is 6,100 units?

1. $38,540

2. $37,500

3. $24,500

Explanation:

1. The computation of revised net operating income per month if the sales volume increases by 80 units is shown below:-

Net operating income = Sales - Variable expenses - Fixed expenses

= (71,80 × $32) - (7,180 × $19) - $54,800

= $229,760 - $136,420 - $54,800

= $38,540

2. The computation of revised net operating income per month if the sales volume decreases by 80 units is shown below:-

Net operating income = Sales - Variable expenses - Fixed expenses

= (71,00 × $32) - (7,100 × $19) - $54,800

= $227,200 - $134,900 - $54,800

= $37,500

3. The computation of revised net operating income per month if the sales volume is 6,100 units is shown below:-

Net operating income = Sales - Variable expenses - Fixed expenses

= (61,00 × $32) - (6,100 × $19) - $54,800

= $195,200 - $115,900 - $54,800

= $24,500

c

explanation:

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