Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,900 units) Variable expenses Total $ 260,700 150,100 Contribution margin 110,600 Per Unit $ 33.00 19.00 $ 14.00 Fixed expenses 54,500 Net operating income $ 56,100 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 100 units? 2. What would be the revised net operating income per month if the sales volume decreases by 100 units? 3. What would be the revised net operating income per month if the sales volume is 6,900 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,900 units) Variable expenses Total $ 260,700 150,100 Contribution margin 110,600 Per Unit $ 33.00 19.00 $ 14.00 Fixed expenses 54,500 Net operating income $ 56,100 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 100 units? 2. What would be the revised net operating income per month if the sales volume decreases by 100 units? 3. What would be the revised net operating income per month if the sales volume is 6,900 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
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:
Sales (7,900 units)
Variable expenses
Total
$ 260,700
150,100
Contribution margin
110,600
Per Unit
$ 33.00
19.00
$ 14.00
Fixed expenses
54,500
Net operating income
$ 56,100
Required:
(Consider each case independently):
1. What would be the revised net operating income per month if the sales volume increases by 100 units?
2. What would be the revised net operating income per month if the sales volume decreases by 100 units?
3. What would be the revised net operating income per month if the sales volume is 6,900 units?
1. Revised net operating income
2. Revised net operating income
3. Revised net operating income
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