Question

Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,200 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 230,400 129,600 100, 800 55,380 $ 45,500 Per Unit $ 32.00 18.00 $ 14.00 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 40 units? 2. What would be the revised net operating income per month if the sales volume decreases by 40 units? 3. What would be the revised net operating income per month if the sales volume is 6.200 units? 1 Revised net operating income 2. Revised not operating income 3. Revised not operating income < Prey 1 of 9 Next > to search

Answer 1

1) Revised net operating income = (7240*14)-55300 = 46060

2) Revised net operating income = (7160*14)-55300 = 44940

3) Revised net operating income = (6200*14)-55300 = 31500