Whirly Corporations most recent income statement is shown be

Whirly Corporation\'s most recent income statement is shown below Sales (7,200 units) Variable expenses TotalPer Unit $ 223,200 $31.00 19.00 136,800 Contribution margin Fixed expenses 86,400 $12.00 55,300 Net operating income $31,100 Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently) 1. The sales volume increases by 50 units Whirly Corporation Contribution Income Statement Total Per Unit Sales ariable expenses Contribution margin (19) ixed expenses

Solution

a.

b.

c.

	Total	Per unit
Sales(7200+50)=7250 units	224750	31
Variable expenses(7250 units)	137750	19
Contribution margin	$87000	12
Fixed Expenses	$55300
Net operating income	$31700