Whirly Corporation's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,600 units) $ 258,000 $ 30.00 Variable expenses 163,400 19.00 Contribution margin 94,600 $ 11.00 Fixed expenses 54,600 Net operating income $ 40,000 Required: (Consider each caße independently): 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 2. What would be the revised net operating income per month if the sales volume decreases by 90 units? 3. What would be the revised net operating income per month if the sales volume is 7600 units? 1 Revised not operating income 2. Revised not operating income 3. Revised not operating income
Last month when Holiday Creations, Incorporated, sold 35,000 units, total sales were $140,000, total variable expenses were $106,400, and fixed expenses were $38,500 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 sales volume by 450 units and total sales by $1,800? (Do not round intermediate calculations.) 1 Contribution margin ratio 2 Estimated change in net operating income
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