Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,300 units) $ 240,900 $ 33.00 Variable expenses 131,400 18.00 Contribution margin 109,500 $ 15.00 Fixed expenses 54,800 Net operating income $ 54,700 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 6,300 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,300 units) $ 240,900 $ 33.00 Variable expenses 131,400 18.00 Contribution margin 109,500 $ 15.00 Fixed expenses 54,800 Net operating income $ 54,700 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 6,300 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Exercise 5-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income [LO5-1]
Whirly Corporation’s contribution format income statement for the most recent month is shown below:
| Total | Per Unit | |
|---|---|---|
| Sales (7,300 units) | $ 240,900 | $ 33.00 |
| Variable expenses | 131,400 | 18.00 |
| Contribution margin | 109,500 | $ 15.00 |
| Fixed expenses | 54,800 | |
| Net operating income | $ 54,700 |
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 6,300 units?
|
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