# Whirly corporation’s contribution format income statement for the most recent month is shown below:

Whirly Corporation’s contribution format income statement for
the most recent month is shown below:

 Total Per Unit Sales (7,500 units) $255,000$ 34.00 Variable expenses 142,500 19.00 Contribution margin 112,500 $15.00 Fixed expenses 54,600 Net operating income$ 57,900

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 6,500 units?

Calculation of revised net operating income per month
if

1. The sales volume increases by 50 units.

Sales total (7,550 X $34)$256,700
Less: Variable expenses (7,550 X $19)$143,450
Contribution margin $113,250 Less: Fixed expenses$54,600
Net operating income $58,650 2. The sales volume decreases by 50 units. Sales total (7,450 X$34) $253,300 Less: Variable expenses (7,450 X$19) $141,550 Contribution margin$111,750
Less: Fixed expenses $54,600 Net operating income$57,150

3. The sales volume is 6,500 units.

Sales total (6,500 X $34)$221,000
Less: Variable expenses (6,500 X $19)$123,500
Contribution margin $97,500 Less: Fixed expenses$54,600
Net operating income \$42,900