Question

Whirly Corporation’s most recent income statement is shown below: Total Per Unit Sales (7,300 units) $ 248,200 $ 34.00 Variable expenses 138,700 19.00 Contribution margin 109,500 $ 15.00 Fixed expenses 55,900 Net operating income $ 53,600 Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): 1. The sales volume increases by 100 units.

Answer 1

Solutioni 1. when the sales volume increases by 100 Bri whirly corporation new contribution income statement & Total per unit 7400x34= 2516OD Sales (1400 couts) variable expenses THODX 19 140600 111000 contribution margin Fired expenses Net operating income 55900 55100 Note & Netoperating income = contribution malgin fired expenses 111000-55 900 55100