EXERCISE 5–1 Preparing a Contribution Format Income Statement [LO5–1]Whirly Corporation's most recent income statement is shown below:TotalPer UnitSales (10,000 units)Variable expenses$350,000$35.00200,00020.00Contribution margin .Fixed expenses$15.00150,000135,000$ 15,000Net operating incomeRequiredPrepare a new contribution format income statement if the sales volume increases by 300 unitsAnswerTitleTotalPer UnitSales RevenueVariable ExpensesContribution MarginFixed ExpensesNet Operating Income

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EXERCISE 5–1 Preparing a Contribution Format Income Statement [LO5–1] Whirly Corporation's most recent income statement is shown below: Total Per Unit Sales (10,000 units) Variable expenses $350,000 $35.00 200,000 20.00 Contribution margin Fixed expenses .. 150,000 $15.00 ... 135,000 Net operating income $ 15,000 ....

EXERCISE 5–1 Preparing a Contribution Format Income Statement [LO5–1] Whirly Corporation's most recent income statement is shown below: Total Per Unit Sales (10,000 units) Variable expenses $350,000 $35.00 200,000 20.00 Contribution margin Fixed expenses .. 150,000 $15.00 ... 135,000 Net operating income $ 15,000 ....

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter20: Variable Costing For Management Analysis

Section: Chapter Questions

Problem 20.15EX: Segment profitability analysis The marketing segment sales for Caterpillar, Inc., for a year follow:...

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EXERCISE 5-13Using a Contribution Format Income Statement [Q LO5-1, Q LO5-4] Miller Company's most recent contribution format income statement is shown below: Total Per Unit Sales (20,000 units) Variable expenses $300,000 180,000 $15.00 9.00 Contribution margin Fixed expenses $ 6.00 120,000 70,000 $ 50,000 Net operating Income.. Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): 1. The number of units sold increases by 15%. 2. The selling price decreases by $1.50 per unit, and the number of units sold increases by 25%. 3. The selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%. 4. The selling price increases by 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by 10%. 41°F Mo
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Exercise 5-2
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?
Exercise 6-1 The Effect of Changes in Activity on Net Operating Income [LO6-1] 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?
Homework. 5 Exercise 5-4 Computing and Using the CM Ratio [LO5-3] Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed expenses were $65,000. 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 total sales by $1,000? 1 Contribution margin ratio 2 Estimated change in net operating income
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