Whirly Corporation’s contribution format income statement for the most recent month is shown below:
| Total | Per Unit | |||||
| Sales (7,900 units) | $ | 237,000 | $ | 30.00 | ||
| Variable expenses | 158,000 | 20.00 | ||||
| Contribution margin | 79,000 | $ | 10.00 | |||
| Fixed expenses | 55,200 | |||||
| Net operating income | $ | 23,800 | ||||
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 6,900 units?
| Case 1 | Case 2 | Case 3 | |
| Units sold | (7900+100)=8000 units | (7900-100)=7800 | 6900 |
| Sales | (8000*30)=240,000 | (7800*30)=234,000 | (6900*30)=207,000 |
| Variable expenses | (8000*20)=160,000 | (7800*20)=156,000 | (6900*20)=138,000 |
| Contribution margin | 80,000 | 78,000 | 69,000 |
| Fixed expenses | 55200 | 55200 | 55200 |
| Net operating income | $24800 | $22800 | $13800. |
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per...
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,900 units) $ 284,800 $ 32.00 Variable expenses 169,100 19.00 Contribution margin 115,700 $ 13.00 Fixed expenses 54,300 Net operating income $ 61,400 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...
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,700 units) $ 254,100 $ 33.00 Variable expenses 146,300 19.00 Contribution margin 107,800 $ 14.00 Fixed expenses 55,200 Net operating income $ 52,600 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume...
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,200 units) $ 216,000 $ 30.00 Variable expenses 129,600 18.00 Contribution margin 86,400 $ 12.00 Fixed expenses 54,600 Net operating income $ 31,800 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...
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...
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,600 units) $ 266,600 $ 31.00 Variable expenses 163,400 19.00 Contribution margin 103,200 $ 12.00 Fixed expenses 54,800 Net operating income $ 48,400 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...
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...
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,700 units) $ 238,700 $ 31.00 Variable expenses 146,300 19.00 Contribution margin 92,400 $ 12.00 Fixed expenses 55,000 Net operating income $ 37,400 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 30 units? 2. What would be the revised net operating income per month if the sales volume...
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,500 units) $ 297,500 $ 35.00 Variable expenses 161,500 19.00 Contribution margin 136,000 $ 16.00 Fixed expenses 54,300 Net operating income $ 81,700 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...
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 55,000 Net operating income $ 69,500 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume...
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...