Whirly Corporation's most recent income statement is shown below: Total Per Unit Sales (7,900 units) $ 252,800 $ 32.00 Variable expenses 150,100 19.00 Contribution margin 102,700 $ 13.00 Fixed expenses 55,100 Net operating income $ 47,600 Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): 1. The sales volume increases by 70 units. 2. The sales volume decreases by 70 units. 3. The sales volume is 6,900 units.

Whirly Corporation's most recent income statement is shown below: Total Per Unit Sales (7,900 units) $ 252,800 $ 32.00 Variable expenses 150,100 19.00 Contribution margin 102,700 $ 13.00 Fixed expenses 55,100 Net operating income $ 47,600 Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): 1. The sales volume increases by 70 units. 2. The sales volume decreases by 70 units. 3. The sales volume is 6,900 units.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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