Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 30.00 Total $ 237,000 150, 100 86,900 19.00 $ 11.00 55,200 $ 31,700 Sales (7,900 units) Variable expenses Contribution margin Fixed expenses Net operating income 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 6,900 units?
Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 30.00 Total $ 237,000 150, 100 86,900 19.00 $ 11.00 55,200 $ 31,700 Sales (7,900 units) Variable expenses Contribution margin Fixed expenses Net operating income 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 6,900 units?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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