Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (8,600 units) Variable expenses Total $ 275,200 163,400 Per Unit $ 32.00 19.00 Contribution margin 111,800 $ 13.00 Fixed expenses Net operating income 55,200 $ 56,600 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 40 units? 2. What would be the revised net operating income per month if the sales volume decreases by 40 units? 3. What would be the revised net operating income per month if the sales volume is 7,600 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 (8,600 units) Variable expenses Total $ 275,200 163,400 Per Unit $ 32.00 19.00 Contribution margin 111,800 $ 13.00 Fixed expenses Net operating income 55,200 $ 56,600 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 40 units? 2. What would be the revised net operating income per month if the sales volume decreases by 40 units? 3. What would be the revised net operating income per month if the sales volume is 7,600 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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