Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $31.00 18.00 $ 13.00 Sales (8,600 units) Variable expenses Contribution, margin Fixed expenses Net operating income. Total $266,600 154,800 111,800 Required: (Consider each case independently): 56,000 $ 55,800 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 2. What would be the revised net operating income per month if the sales volume decreases by 90 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 $31.00 18.00 $ 13.00 Sales (8,600 units) Variable expenses Contribution, margin Fixed expenses Net operating income. Total $266,600 154,800 111,800 Required: (Consider each case independently): 56,000 $ 55,800 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 2. What would be the revised net operating income per month if the sales volume decreases by 90 units? 3. What would be the revised net operating income per month if the sales volume is.7,600 units?
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter13: Budgeting And Standard Costs
Section: Chapter Questions
Problem 13.6.2MBA
Related questions
Question

Transcribed Image Text:Whirly Corporation's contribution format income statement for the most recent month is shown below:
Per Unit
$31.00
18.00
$ 13.00
Sales (8,600 units)
Variable expenses
Contribution, margin
Fixed expenses
Net operating income
Total
$ 266,600
154,800
111,800
Required:
(Consider each case independently):
1. Revised net operating income
2. Revised net operating income
3. Revised net operating income
56,000
$ 55,800
1. What would be the revised net operating income per month if the sales volume increases by 90 units?
2. What would be the revised net operating income per month if the sales volume decreases by 90 units?
3. What would be the revised net operating income per month if the sales volume is.7,600 units?
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Step 1: Introduction to Contribution Margin Income statement
VIEWStep 2: 1)Calculation of revised net operating income when sale volume increased by 90 units
VIEWStep 3: 2) Revised net operating income when sales volume decreased by 90 units:
VIEWStep 4: 3) Calculation of revised net operating income when sales volume is 7,600 units:
VIEWSolution
VIEWTrending now
This is a popular solution!
Step by step
Solved in 5 steps with 8 images

Recommended textbooks for you

Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning

Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning