Whirly Corporation’s most recent income statement is shown below:

Whirly Corporation’s most recent income statement is shown below:

	Total		Per Unit
Sales (7,900 units)	$	244,900	$	31.00
Variable expenses		150,100		19.00
Contribution margin		94,800	$	12.00
Fixed expenses		55,000
Net operating income	$	39,800

Required:

Prepare a new contribution format income statement under each of the following conditions (consider each case independently):

1.	The sales volume increases by 40 units.

2. The sales volume decreases by 40 units.   3. The sales volume is 6,900 units. Explanation: 1. Sales (7,940 × $31.00) = $246,140 2. Sales (7,860 × $31.00) = $243,660 3. Sales (6,900 × $31.00) = $213,900