Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (10,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider Total $350,000 200,000 150,000 135,000 $ 15,000 Per Unit $35.00 20.00 $15.00 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 9,000 units?
Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (10,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider Total $350,000 200,000 150,000 135,000 $ 15,000 Per Unit $35.00 20.00 $15.00 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 9,000 units?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
Transcribed Image Text:Whirly Corporation's contribution format income statement for the most recent month is shown below:
Total.
$350,000
Per Unit
$35.00
200,000
20.00
$15.00
Sales (10,000 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income i
150,000
135,000
$ 15,000
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 9,000 units?
1.
Revised net operating income
2. Revised net operating income
3. Revised net operating income
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