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):
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| 1. |
The sales volume increases by 40 units.
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2.
The sales volume decreases by 40 units.
3.
The sales volume is 6,900 units.
Explanation:
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