Question

Chapter 5 Exercises Saved Whirly Corporation's contribution format income statement for the most recent month is shown below: 20 points Total Sales (8,000 $ 272,000 units) Variable expenses 152,000 Contribution 120,000 margin Fixed expenses 55,300 Net operating $ 64,700 income Per Unit $34.00 19.00 $15.00 eBook Hint Required: (Consider each case independently): Print 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units? 3. What would be the revised net operating income per month if the sales volume is 7,000 units? References Revised net operating income Revised net operating income Revised net operating income

Answer 1

Answer-1-The revised net operating income per month if the sales volume increases by 80 units:-

Sales (8,080*$34)	$274,720
Less: Variable Expenses (8,080*$19)	$153,520
Contribution Margin	$121,200
Less:Fixed Expenses	$55,300
Revised Net Operating Income	$65,900

2-

The revised net operating income per month if the sales volume decreases by 80 units:-

Sales (7,920*$34)	$269,280
Less: Variable Expenses (7,920*$19)	$150,480
Contribution Margin	$118,800
Less:Fixed Expenses	$55,300
Revised Net Operating Income	$63,500

3-

The revised net operating income per month if the sales volume is 7,000 units:-

Sales (7,000*$34)	$238,000
Less: Variable Expenses (7,000*$19)	$133,000
Contribution Margin	$105,000
Less:Fixed Expenses	$55,300
Revised Net Operating Income	$49,700

Kindly give me thumbs up if u like my answer...Thanks!!!