Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 30.00 18.00 $ 12.00 Sales (8,400 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 252,000 151,200 100,800 54,400 $ 46,400 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 7,400 units?
Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 30.00 18.00 $ 12.00 Sales (8,400 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 252,000 151,200 100,800 54,400 $ 46,400 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 7,400 units?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Whirly Corporation's contribution format income statement for the most recent month is shown below:
Per Unit
$ 30.00
18.00
$ 12.00
Sales (8,400 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 252,000
151,200
100,800
54,400
$ 46,400
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 7,400 units?
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