Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,400 units) Contribution margin Total Variable expenses $ 229,400 140,600 88,800 Per Unit $ 31.00 19.00 $ 12.00 Fixed expenses 55,700 Net operating income $ 33,100 Required: (Consider each case independently): 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 6,400 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Whirly Corporation's contribution format income statement for the most recent month is shown below:
Sales (7,400 units)
Contribution margin
Total
Variable expenses
$ 229,400
140,600
88,800
Per Unit
$ 31.00
19.00
$ 12.00
Fixed expenses
55,700
Net operating income
$ 33,100
Required:
(Consider each case independently):
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 6,400 units?
1. Revised net operating income
2. Revised net operating income
3. Revised net operating income
Transcribed Image Text:Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,400 units) Contribution margin Total Variable expenses $ 229,400 140,600 88,800 Per Unit $ 31.00 19.00 $ 12.00 Fixed expenses 55,700 Net operating income $ 33,100 Required: (Consider each case independently): 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 6,400 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
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