Whirly Corporation’s contribution format income statement for the most recent month is shown below:
Total and per unit
Sales (7,600 units) $258,400 $34.00
Variable expenses 144,400 19.00
Contribution margin 114,000 $15.00
Fixed expenses 55,300
Net operating income $58,700
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 6,600 units?
Net operating income = Total Contribution margin - Fixed cost
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1. Net operating income = (15*7700) - 55,300 = 60,200 |
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2. Net operating income = (15*7500) - 55,300 = 57,200 |
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3. Net operating income = (15*6600) - 55,300 = 43,700 |
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total and...
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,600 units) $ 235,600 $ 31.00 Variable expenses 144,400 19.00 Contribution margin 91,200 $ 12.00 Fixed expenses 56,000 Net operating income $ 35,200 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 2. What would be the revised net operating income per month if the sales volume...
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Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,300 units) $ 282,200 $ 34.00 Variable expenses 157,700 19.00 Contribution margin 124,500 $ 15.00 Fixed expenses 54,600 Net operating income $ 69,900 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...
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Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,600 units) $ 235,600 $ 31.00 Variable expenses 152,000 20.00 Contribution margin 83,600 $ 11.00 Fixed expenses 54,400 Net operating income $ 29,200 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 2. What would be the revised net operating income per month if the sales volume...
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