Whirly Corporation’s contribution format income statement for the most recent month is shown below:     Total   Per Unit Sales (8,100 units) $ 251,100   $ 31.00   Variable expenses   145,800     18.00   Contribution margin   105,300   $ 13.00   Fixed expenses   54,600         Net operating income $ 50,700             Required: (Consider each case independently):   1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units? 3. What would be the revised net operating income per month if the sales volume is 7,100 units?

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Exercise 7-28 Publishing; Contribution Income Statement (LO 7-7, 7-8) Europa Publications, Inc., specializes in reference books that keep abreast of the rapidly changing political and economic issues in Europe. The results of the company's operations during the prior year are given in the following table. All units produced during the year were sold. (Ignore income taxes.) Sales revenue Manufacturing costs: Fixed Variable $1,900,000 511,000 982,000 Selling costs: Fixed Variable Administrative costs: Fixed Variable 38,000 68,000 78,000 33,000 Required: 1-a. Prepare a traditional income statement for the company. 1-b. Prepare a contribution income statement for the company. 2. What is the firm's operating leverage for the sales volume generated during the prior year? 3. Suppose sales revenue increases by 14 percent. What will be the percentage increase in net income? 4. Which income statement would an operating manager use to answer requirement 3? Complete this question by entering your…