Preparing Contribution format income statement.
Whirly Corporation most recent income statement is shown below:
|
Total
|
Per Unit
|
|
Sales (10,000 units)
|
$350,000
|
$35.00
|
|
Less variable expenses
|
200,000
|
20.00
|
|
Contribution margin
|
150,000
|
$15.00
|
|
Less fixed expenses
|
135,000
|
|
|
Net operating income
|
$15,000
|
|
Prepare a new contribution format income statement under each of the following conditions (consider each case independently):
1. The sales volume increases by 100 units.
2. The sales volume decreases by 100 units.
3. The sales volume is 9,000 units.