Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit. $ 35.00 20.00 $ 15.00 Sales (7,600 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 266,000 152,000 114,000 54,600 $ 59,400 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 60 units? 2. What would be the revised net operating income per month if the sales volume decreases by 60 units? 3. What would be the revised net operating income per month if the sales volume is 6,600 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income Answer is complete but not entirely correct. $ $ 60,300 58,050 44,400

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Question

Owe

Whirly Corporation's contribution format income statement for the most recent month is shown below:
Per Unit
$35.00
20.00
$ 15.00
Sales (7,600 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 266,000
152,000
114,000
54,600
$ 59,400
Required:
(Consider each case independently):
1. What would be the revised net operating income per month if the sales volume increases by 60 units?
2. What would be the revised net operating income per month if the sales volume decreases by 60 units?
3. What would be the revised net operating income per month if the sales volume is 6,600 units?
Answer is complete but not entirely correct.
$ 60,300
$ 58,050
$
44,400
1. Revised net operating income
2. Revised net operating income
3. Revised net operating income
Transcribed Image Text:Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $35.00 20.00 $ 15.00 Sales (7,600 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 266,000 152,000 114,000 54,600 $ 59,400 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 60 units? 2. What would be the revised net operating income per month if the sales volume decreases by 60 units? 3. What would be the revised net operating income per month if the sales volume is 6,600 units? Answer is complete but not entirely correct. $ 60,300 $ 58,050 $ 44,400 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
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