Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 33.00 19.00 $ 14.00 Sales (8,500 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 280,500 161,500 119,000 54,700 $ 64,300 Required: (Consider each case independently): 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 7,500 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income Whirly Corporation's contribution format income statement for the most recent month is shown below:| | Total | Per Unit ||---------------------------------|---------------|-----------|| Sales (8,500 units) | $280,500 | $33.00 || Variable expenses | 161,500 | $19.00 || Contribution margin | 119,000 | $14.00 || Fixed expenses | 54,700 | || Net operating income | $64,300 | |**Required:**(Consider each case independently.)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 7,500 units?**Answers:**1. Revised net operating income: _______2. Revised net operating income: _______3. Revised net operating income: _______

The contribution margin is calculated as the sales revenue less variable costs. The net income is…

Answered: Unit $ 33.00 19.00 $ 14.00 Sales (8,500…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 33.00 19.00 $ 14.00 Sales (8,500 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 280,500 161,500 119,000 54,700 $ 64,300 Required: (Consider each case independently): 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 7,500 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income