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?
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
$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?
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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:
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