Whirly Corporation's contribution format income statement for the most recent month is shown below: Total $257,400 148,200 Per Unit Sales (7,800 units) Variable expenses $ 33.00 19.00 Contribution margin 109, 200 $ 14.00 Fixed expenses 54,900 2$ Net operating income 54,300 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 6,800 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income

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Chapter8: Tactical Decision-making And Relevant Analysis
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Whirly Corporation's contribution format income statement for the most recent month is shown below:
Total
Per Unit
Sales (7,800 units)
Variable expenses
$ 257,400
148,200
$ 33.00
19.00
Contribution margin
109, 200
$ 14.00
Fixed expenses
54,900
Net operating income
$
54,300
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 6,800 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: Total Per Unit Sales (7,800 units) Variable expenses $ 257,400 148,200 $ 33.00 19.00 Contribution margin 109, 200 $ 14.00 Fixed expenses 54,900 Net operating income $ 54,300 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 6,800 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
Expert Solution
Step 1

Given that ,

 per unit :

Sales :  $33

Variable expenses: $19

contribution : $ 14

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