Whirly Corporation's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,800 units) Variable expenses $ 249,600 140,400 $ 32.00 18.00 Contribution margin 109, 200 $ 14.00 Fixed expenses 55,600 Net operating income $ 53,600 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 6,800 units? 1. Revised net operating income 2 Rovicod not onoroting inoomo
Whirly Corporation's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,800 units) Variable expenses $ 249,600 140,400 $ 32.00 18.00 Contribution margin 109, 200 $ 14.00 Fixed expenses 55,600 Net operating income $ 53,600 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 6,800 units? 1. Revised net operating income 2 Rovicod not onoroting inoomo
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variable cost is the required cost of production that changes with the change in level of output. Fixed cost remains same with the change in level of output up to a defined limit.
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