Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,400 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 236,800 140,600 96,200 54,300 $ 41,900 Per Unit $32.00 19.00 $13.00 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 6,400 units?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Whirly Corporation's contribution format income
statement for the most recent month is shown
below:
Sales (7,400 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 236,800
140,600
96,200
54,300
$ 41,900
Per Unit
$32.00
19.00
$13.00
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 6,400
units?
Transcribed Image Text:Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,400 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 236,800 140,600 96,200 54,300 $ 41,900 Per Unit $32.00 19.00 $13.00 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 6,400 units?
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