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?
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?
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 20MC: Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month...
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Question
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?
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