Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 33.00 19.00 $ 14.00 Sales (8,600 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): Total $283,800 163,400 120,400 55,300 $ 65,100 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 7,600 units?
Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 33.00 19.00 $ 14.00 Sales (8,600 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): Total $283,800 163,400 120,400 55,300 $ 65,100 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 7,600 units?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Whirly Corporation's contribution format income statement for the most recent month is shown below:
Total
$283,800
163,400
Per Unit
$ 33.00
19.00
$14.00
Sales (8,600 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Required:
(Consider each case independently):
120,400
55,300
$ 65,100
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 7,600 units?
1. Revised net operating income
2. Revised net operating income
3. Revised net operating income
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Step 1: Applications of Cost-Volume Profit Analysis :
VIEWStep 2: 1) Calculation of revised net operating income if sales volume is increased by 50 units :
VIEWStep 3: 2)Calculation of revised net operating income if sales volume is decreased by 50 units :
VIEWStep 4: 3)Calculation of revised net operating income if sales volume is 7,600 units :
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