Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 33.00 18.00 $ 15.00 Sales (7,700 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 254,100 138,600 Required: (Consider each case independently) 1. Revised net operating income 2 Revised net operating income 3. Revised net operating income 115,500 54,100 $ 61,400 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 6,700 units?
Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 33.00 18.00 $ 15.00 Sales (7,700 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 254,100 138,600 Required: (Consider each case independently) 1. Revised net operating income 2 Revised net operating income 3. Revised net operating income 115,500 54,100 $ 61,400 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 6,700 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
$ 33.00
18.00
$ 15.00
Sales (7,700 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 254,100
138,600
115,500
Required:
(Consider each case independently)
1 Revised net operating income
2 Revised net operating income
3. Revised net operating income
54,100
$ 61,400
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 6,700 units?
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Step 1: Introducing Marginal Costing
VIEWStep 2: Calculate Revised Net Operating Income of sales Volume increased by 50 Units
VIEWStep 3: Calculate Revised Net Operating Income of sales Volume Decreased by 50 Units
VIEWStep 4: Calculate Revised Net Operating Income if Sales Volume is 6,700 Units
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