Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit. $ 34.00 19.00 $15.00 Sales (8,400 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 285,600 159,600 126,000 54,700 $ 71,300 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume decreases by 50 units? 3. What would be the revised net operating income per month if the sales volume is 7,400 units?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Whirly Corporation's contribution format income statement for the most recent month is shown below:
Per Unit
$34.00
19.00
126,000 $ 15.00
54,700
$ 71,300
Sales (8,400 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Required:
(Consider each case independently):
Total
$ 285,600
159,600
1. What would be the revised net operating income per month if the sales volume increases by 50 units?
2. What would be the revised net operating income per month if the sales volume decreases by 50 units?
3. What would be the revised net operating income per month if the sales volume is 7,400 units?
1. Revised net operating income
2. Revised net operating income
3. Revised net operating income
+
Transcribed Image Text:Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $34.00 19.00 126,000 $ 15.00 54,700 $ 71,300 Sales (8,400 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): Total $ 285,600 159,600 1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume decreases by 50 units? 3. What would be the revised net operating income per month if the sales volume is 7,400 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income +
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