Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,000 units) $ 240,000 $ 30.00 Variable expenses 152,000 19.00 Contribution margin 88,000 $ 11.00 Fixed expenses 55,000 Net operating income $ 33,000 Can you please help me solve for the following: A. What would be the revised net operating income per month if the sales volume increases by 60 units? B. What would be the revised net operating income per month if the sales volume decreases by 60 units? C. What would be the revised net operating income per month if the sales volume is 7,000 units?
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,000 units) $ 240,000 $ 30.00 Variable expenses 152,000 19.00 Contribution margin 88,000 $ 11.00 Fixed expenses 55,000 Net operating income $ 33,000 Can you please help me solve for the following: A. What would be the revised net operating income per month if the sales volume increases by 60 units? B. What would be the revised net operating income per month if the sales volume decreases by 60 units? C. What would be the revised net operating income per month if the sales volume is 7,000 units?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Whirly Corporation’s contribution format income statement for the most recent month is shown below:
| Total | Per Unit | |
|---|---|---|
| Sales (8,000 units) | $ 240,000 | $ 30.00 |
| Variable expenses | 152,000 | 19.00 |
| Contribution margin | 88,000 | $ 11.00 |
| Fixed expenses | 55,000 | |
| Net operating income | $ 33,000 |
Can you please help me solve for the following:
A. What would be the revised net operating income per month if the sales volume increases by 60 units?
B. What would be the revised net operating income per month if the sales volume decreases by 60 units?
C. What would be the revised net operating income per month if the sales volume is 7,000 units?
Transcribed Image Text:Whirly Corporation's contribution format income statement for the most recent month is shown below:
Per Unit
$ 30.00
19.00
$ 11.00
Sales (8,000 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 240,000
152,000
88,000
55,000
$ 33,000
Required:
(Consider each case independently):
1. Revised net operating income
2. Revised net operating income
3. Revised net operating income
1. What would be the revised net operating income per month if the sales volume increases by 60 units?
2. What would be the revised net operating income per month if the sales volume decreases by 60 units?
3. What would be the revised net operating income per month if the sales volume is 7,000 units?
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