Exercise 6-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income [LO6-1] Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $31.00 19.00 $ 12.00 Sales (7,300 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 226,300 138,700 Required: (Consider each case independently): 1. Revised net operating income. 2 Revised net operating income 3. Revised net operating income 87,600 54,500 $ 33,100 1. What would be the revised net operating income per month if the sales volume increases by 100 units? 2. What would be the revised net operating income per month if the sales volume decreases by 100 units? 3. What would be the revised net operating income per month if the sales volume is 6,300 units?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Exercise 6-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income [LO6-1]
Whirly Corporation's contribution format income statement for the most recent month is shown below:
Per Unit
$31.00
19.00
$ 12.00
Sales (7,300 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 226,300
138,700
87,600
Required:
(Consider each case independently):
1. Revised net operating income
2. Revised net operating income
3. Revised net operating income
54,500
$ 33,100
1. What would be the revised net operating income per month if the sales volume increases by 100 units?
2. What would be the revised net operating income per month if the sales volume decreases by 100 units?
3. What would be the revised net operating income per month if the sales volume is 6,300 units?
Transcribed Image Text:Exercise 6-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income [LO6-1] Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $31.00 19.00 $ 12.00 Sales (7,300 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 226,300 138,700 87,600 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 54,500 $ 33,100 1. What would be the revised net operating income per month if the sales volume increases by 100 units? 2. What would be the revised net operating income per month if the sales volume decreases by 100 units? 3. What would be the revised net operating income per month if the sales volume is 6,300 units?
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