Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (10,000 units) ................................... $350,000 $35.0 Variable expenses ................................... 200,000 20 Contribution margin ................................... 150,000 $15 Fixed expenses............................................... 135,000 Net operating income............................... $15,000 Required:(Consider each case independently):1. What would be the revised net operating income per month if the sales volume increases by 100 units?2. What would be the revised net operating income per month if the sales volume decreases by 100 units?3. What would be the revised net operating income per month if the sales volume is 9,000 units?

Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (10,000 units) ................................... $350,000 $35.0 Variable expenses ................................... 200,000 20 Contribution margin ................................... 150,000 $15 Fixed expenses............................................... 135,000 Net operating income............................... $15,000 Required:(Consider each case independently):1. What would be the revised net operating income per month if the sales volume increases by 100 units?2. What would be the revised net operating income per month if the sales volume decreases by 100 units?3. What would be the revised net operating income per month if the sales volume is 9,000 units?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,200 units) $ 237,600 $ 33.00 Variable expenses 136,800 19.00 Contribution margin 100,800 $ 14.00 Fixed expenses 55,700 Net operating income $ 45,100 What would be the revised net operating income per month if the sales volume decreases by 40 units?
Miltank Company sells a single product for ₱20 per unit. Last year, the company's sales revenue was ₱300,000 and its net operating income was ₱24,000. If fixed expenses totaled ₱96,000 for the year, the contribution margin per unit was ₱__________.
A company’s net sales are ₹ 15,00,000; cost of sales is ₹ 10,00,000 and indirect expenses are ₹ 3,00,000, the amount gross profit will be:
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The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales $ 4,000,000 $ 80.00 Variable expenses 2,800,000 56.00 Contribution margin 1,200,000 24.00 Fixed expenses 840,000 16.80 Net operating income 360,000 7.20 Income taxes @ 30% 108,000 2.16 Net income $ 252,000 $ 5.04 The company had average operating assets of $2,000,000 during the year. At the beginning of the year, the company uses $200,000 of cash (received on accounts receivable) to repurchase and retire some of its common stock Effect Margin ____ % ____ Turnover ____ ____ ROI ____ % ____
The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales $ 4,000,000 $ 80.00 Variable expenses 2,800,000 56.00 Contribution margin 1,200,000 24.00 Fixed expenses 840,000 16.80 Net operating income 360,000 7.20 Income taxes @ 30% 108,000 2.16 Net income $ 252,000 $ 5.04 The company had average operating assets of $2,000,000 during the year. At the beginning of the year, the company uses $200,000 of cash (received on accounts receivable) to repurchase and retire some of its common stock At the beginning of the year, the company uses $200,000 of cash (received on accounts receivable) to repurchase and retire some of its common stock. (Round your intermediate calculations and final answers to 2 decimal places.) Effect Margin 6.30selected answer incorrect % not attempted Turnover 2.00selected answer incorrect not attempted ROI 12.60selected…
The following is Arkadia Corporation's contribution format income statement for last month:Sales.............................................. P1,200,000Variable expenses......................... 800,000Contribution margin ....................... 400,000Fixed expenses ............................. 300,000Net operating income .................... P 100,000The company has no beginning or ending inventories and produced and sold 20,000 units during the month.Required:a. What is the company's contribution margin ratio?b. What is the company's break-even in units?c. If sales increase by 100 units, by how much should net operating income increase?d. How many units would the company have to sell to attain target profits of P125,000?e. What is the company's margin of safety in pesos?f. What is the company's degree of operating leverage?
The following monthly data in contribution format are available for the MN Co. and its only product: Total Per Unit Sales……………………………………………………………. $83,700 $279 Variable expenses………………………………………. 32,700 109 Contribution margin…………………………………… 51,000 $170 Fixed expenses……………………………………………. 40,000 Net operating income…………………………………. $11,000 The Company is currently using 70% of its available capacity. selling 300 units of product per month. b. What is the sales volume required to achieve a target profits margin 20%?
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,800 units) $ 308,000 $ 35.00 Variable expenses 167,200 19.00 Contribution margin 140,800 $ 16.00 Fixed expenses 54,700 Net operating income $ 86,100 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 7,800 units?
Moyas Corporation sells a single product for $20 per unit. Last year, the company's sales revenuewas $300,000 and its net operating income was $24,000. If fixed expenses totaled $96,000 for theyear, the break-even point in unit sales was:A) 12,000 units B) 14,100 units C) 9,900 units D) 15,000 units
*CAN YOU ANSWER PARTS 4-7* The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales $ 992,000 $ 49.60 Variable expenses 595,200 29.76 Contribution margin 396,800 19.84 Fixed expenses 318,800 15.94 Net operating income 78,000 3.90 Income taxes @ 40% 31,200 1.56 Net income $ 46,800 $ 2.34 The company had average operating assets of $492,000 during the year. Required: 1. Compute the company’s return on investment (ROI) for the period using the ROI formula stated in terms of margin and turnover. For each of the following questions, indicate whether the margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI figure. Consider each question separately, starting in each case from the data used to compute the original ROI in (1) above. 2. Using Lean Production, the company is able to reduce the average level of…
Amaz-a-nation reported the following data for the year just ended: sales revenue, $1,850,000; cost of goods sold, $860,000; cost of goods manufactured, $566,000; and selling and administrative expenses, $183,000. What is Amaz-a-nation's gross margin?