Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $32.00 19.00 $13.00 Sales (8,300 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 265,600 157, 700 107,900 55,200 $ 52,700 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 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units? 3. What would be the revised net operating income per month if the sales volume is 7,300 units?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Whirly Corporation's contribution format income statement for the most recent month is shown below:
Per Unit
$ 32.00
19.00
$13.00
Sales (8,300 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 265,600
157,700
Required:
(Consider each case independently):
1. Revised net operating income
2. Revised net operating income
3. Revised net operating income
8 $
107,900
55,200
$ 52,700
1. What would be the revised net operating income per month if the sales volume increases by 80 units?
2. What would be the revised net operating income per month if the sales volume decreases by 80 units?
3. What would be the revised net operating income per month if the sales volume is 7,300 units?
Transcribed Image Text:Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 32.00 19.00 $13.00 Sales (8,300 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 265,600 157,700 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 8 $ 107,900 55,200 $ 52,700 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units? 3. What would be the revised net operating income per month if the sales volume is 7,300 units?
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