Exercise 5-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income [LO5-1] Whirly Corporation's contribution format income statement for the most recent month is shown below: Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 30 units? 2. What would be the revised net operating income per month if the sales volume decreases by 30 units? 3. What would be the revised net operating income per month if the sales volume is 6,500 units? Exercise 5-4 (Algo) Computing and Using the CM Ratio [LO5-3] Last month when Holiday Creations, Incorporated, sold 38,000 units, total sales were $152 , 000 , total variable expenses were $124 , 640 , and fixed expenses were $37 , 300 . 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.) Mauro Products distributes a single product, a woven basket whose selling price is $14 per unit and whose variable expense is $12 per unit. The company's monthly fixed expense is $5 , 400 . Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600 , what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.) Lin Corporation has a single product whose selling price is $135 per unit and whose variable expense is $81 per unit. The company's monthly fixed expense is $24 , 300 . Required: 1. Calculate the unit sales needed to attain a target profit of $4 , 050 . (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $8 , 300 . (Round your intermediate calculations to the nearest whole number.) Exercise 5-14 (Algo) Break-Even and Target Profit Analysis [LO5-3, LO5-4, LO5-5, LO5-6] Lindon Company is the exclusive distributor for an automotive product that sells for $36.00 per unit and has a CM ratio of 30% . The company's fixed expenses are $210 , 600 per year. The company plans to sell 22,300 units this year. Required: 1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.) 2. What is the break-even point in unit sales and in dollar sales? 3. What amount of unit sales and dollar sales is required to attain a target profit of $102 , 600 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.60 per unit. What is the company's new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $102 , 600 ? .

1. Exercise 5-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income [LO5-1]
Whirly Corporation's contribution format income statement for the most recent month is shown
below: Required: (Consider each case independently): 1. What would be the revised net
operating income per month if the sales volume increases by 30 units? 2. What would be the
revised net operating income per month if the sales volume decreases by 30 units? 3. What
would be the revised net operating income per month if the sales volume is 6,500 units? Exercise
5-4 (Algo) Computing and Using the CM Ratio [LO5-3] Last month when Holiday Creations,
Incorporated, sold 38,000 units, total sales were $152 , 000 , total variable expenses were $124 ,
640 , and fixed expenses were $37 , 300 . 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.) Mauro Products distributes a single product, a woven basket whose selling price is
$14 per unit and whose variable expense is $12 per unit. The company's monthly fixed expense
is $5 , 400 . Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the
company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the
company's fixed expenses increase by $600 , what would become the new break-even point in
unit sales? In dollar sales? (Do not round intermediate calculations.) Lin Corporation has a single
product whose selling price is $135 per unit and whose variable expense is $81 per unit. The
company's monthly fixed expense is $24 , 300 . Required: 1. Calculate the unit sales needed to
attain a target profit of $4 , 050 . (Do not round intermediate calculations.) 2. Calculate the dollar
sales needed to attain a target profit of $8 , 300 . (Round your intermediate calculations to the
nearest whole number.) Exercise 5-14 (Algo) Break-Even and Target Profit Analysis [LO5-3,
LO5-4, LO5-5, LO5-6] Lindon Company is the exclusive distributor for an automotive product
that sells for $36.00 per unit and has a CM ratio of 30% . The company's fixed expenses are $210
, 600 per year. The company plans to sell 22,300 units this year. Required: 1. What are the
variable expenses per unit? (Round your "per unit" answer to 2 decimal places.) 2. What is the
break-even point in unit sales and in dollar sales? 3. What amount of unit sales and dollar sales is
required to attain a target profit of $102 , 600 per year? 4. Assume that by using a more efficient
shipper, the company is able to reduce its variable expenses by $3.60 per unit. What is the
company's new break-even point in unit sales and in dollar sales? What dollar sales is required to
attain a target profit of $102 , 600 ?