ation's contribution format income statement for the most units) penses margin ses ng income Total $ 254,200 155,800 98,400 55,600 $ 42,800 Per Unit $31.00 19.00 $ 12.00
ation's contribution format income statement for the most units) penses margin ses ng income Total $ 254,200 155,800 98,400 55,600 $ 42,800 Per Unit $31.00 19.00 $ 12.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 5-1 The Effect of Changes in Activity on Net Operating Income [LO5-1]
Whirly Corporation's contribution format income statement for the most recent month is shown below:
Per Unit
$31.00
19.00
$ 12.00
Sales (8,200 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 254,200
155,800
$
Required:
(Consider each case independently):
1. Revised net operating income
2. Revised net operating income
3.
Revised net operating income
98,400
55,600
42,800
1. What would be the revised net operating income per month if the sales volume increases by 70 units?
2. What would be the revised net operating income per month if the sales volume decreases by 70 units?
3. What would be the revised net operating income per month if the sales volume is 7,200 units?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe26c8f8d-7152-4fa4-bb7e-a199e05b3e8e%2Ffc73a4a6-c8f5-4773-b912-f2243eddc791%2Fokqg99i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 5-1 The Effect of Changes in Activity on Net Operating Income [LO5-1]
Whirly Corporation's contribution format income statement for the most recent month is shown below:
Per Unit
$31.00
19.00
$ 12.00
Sales (8,200 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 254,200
155,800
$
Required:
(Consider each case independently):
1. Revised net operating income
2. Revised net operating income
3.
Revised net operating income
98,400
55,600
42,800
1. What would be the revised net operating income per month if the sales volume increases by 70 units?
2. What would be the revised net operating income per month if the sales volume decreases by 70 units?
3. What would be the revised net operating income per month if the sales volume is 7,200 units?
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