Question

Whirly Corporation's contribution format income statement for the most recent month is shown below Total $ 231, 000 140, 000 Per Unit Sales (7,000 units) Variable expenses Contribution margin 10 $ 33.00 20.00 points 91,000 $13.00 Fixed expenses 54, 300 $36, 7e0 eBook Net operating income Hint Print Required: (Consider each case independently): References 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 decreases by 50 units? 3. What would be the revised net operating income per month if the sales volume is 6,000 units? 1Revised net operating income 2. Revised net operating income 3 Revised net operating income

Answer 1

Answer: U Reuised net operating income of sales volume increases by 50 units units per unit To tell sales $33 7050 (7000 4-550) $ 232,650 (141,000) (as leksi-variable cost 7050 13 $91650 contribution margin 13 (54300) lexs:- Fixed experses $ 37,350. net operating Income Caj Revised Met operating income if sales volume decreases by so unis: - Total perunit units 6950 (7000-50) $33 $229,350 sales (139000) cost 6950 less - variable 13 $90350 13 contribution margin mg (su 300) less fired expenses $36050 Met operating income

(3) Revised Net operating income if sales volume 88 6000 units Sales (6000 x $33) = $ 198000 less - Variable wst (6000x $ 20) = $120,000) Contribution margin = $ 78,000 = < (54300) 144 pixed expenses $23,700 Net operating income = thanks