Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,100 units) $ 267,300 $ 33.00 Variable expenses 162,000 20.00 Contribution margin 105,300 $ 13.00 Fixed expenses 54,800 Net operating income $ 50,500 Required: (Consider each case independently): 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 7,100 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:

Total Per Unit Sales (8,100 units) $ 267,300 $ 33.00 Variable expenses 162,000 20.00 Contribution margin 105,300 $ 13.00 Fixed expenses 54,800 Net operating income $ 50,500 Required: (Consider each case independently):

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 7,100 units?

 

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