Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 32.00 18.00 $14.00 Sales (8,200 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 262,400 147,600 114,800 54,400 $ 60,400 Required: (Consider each case independently): 1. Revised net operating income 2 Revised net operating income 3. Revised net operating income 1. What would be the revised net operating income per month if the sales volume increases by 30 units? 2. What would be the revised net operating income per month if the sales volume decreases by 30 units? 3. What would be the revised net operating income per month if the sales volume is 7,200 units?
Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 32.00 18.00 $14.00 Sales (8,200 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 262,400 147,600 114,800 54,400 $ 60,400 Required: (Consider each case independently): 1. Revised net operating income 2 Revised net operating income 3. Revised net operating income 1. What would be the revised net operating income per month if the sales volume increases by 30 units? 2. What would be the revised net operating income per month if the sales volume decreases by 30 units? 3. What would be the revised net operating income per month if the sales volume is 7,200 units?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 5-1 The Effect of Changes in Activity on Net Operating Income [LO5-1]
Whirly Corporation's contribution format income statement for the most recent month is shown below:
Per Unit
$ 32.00
18.00
$ 14.00
Sales (8,200 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 262,400
147,600
114,800
54,400
$ 60,400
Required:
(Consider each case independently):
1. Revised net operating income
2 Revised net operating income
3. Revised net operating income
1. What would be the revised net operating income per month if the sales volume increases by 30 units?
2. What would be the revised net operating income per month if the sales volume decreases by 30 units?
3. What would be the revised net operating income per month if the sales volume is 7,200 units?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe0040a9c-74b4-4d82-b1c4-b8393589224c%2Fec85da28-3439-4272-b763-70ed43ba0d0e%2Fqks5xq9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 5-1 The Effect of Changes in Activity on Net Operating Income [LO5-1]
Whirly Corporation's contribution format income statement for the most recent month is shown below:
Per Unit
$ 32.00
18.00
$ 14.00
Sales (8,200 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 262,400
147,600
114,800
54,400
$ 60,400
Required:
(Consider each case independently):
1. Revised net operating income
2 Revised net operating income
3. Revised net operating income
1. What would be the revised net operating income per month if the sales volume increases by 30 units?
2. What would be the revised net operating income per month if the sales volume decreases by 30 units?
3. What would be the revised net operating income per month if the sales volume is 7,200 units?
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