Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,100 units) Variable expenses Total Fixed expenses Net operating income $ 227,200 134,900 Contribution margin 92,300 54,300 $ 38,000 Per Unit $ 32.00 19.00 $ 13.00 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 30 units?
Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,100 units) Variable expenses Total Fixed expenses Net operating income $ 227,200 134,900 Contribution margin 92,300 54,300 $ 38,000 Per Unit $ 32.00 19.00 $ 13.00 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 30 units?
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:
$
227,200
Variable expenses 134,900
Sales (7,100 units)
Total
Contribution margin 92,300
Fixed expenses
Net operating
income
54,300
$ 38,000
Per Unit
$
32.00
19.00
$
13.00
Required:
(Consider each case independently):
1. What would be the revised net operating
income per month if the sales volume
increases by 30 units?
2. What would be the revised net operating
income per month if the sales volume
decreases by 30 units?
3. What would be the revised net operating
income per month if the sales volume is
6,100 units?
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Step 1: Introduce to income statement
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VIEWStep 3: Working for revised operating income if sales volume decrease by 30 units
VIEWStep 4: Working for revised net operating income if sales volume is 6,100 units
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