Question

Whirly Corporation's contribution format income statement for the most recent month is shown below. Sales (8,680 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 266,600 163,400 103,200 55,100 $ 48,100 Per Unit $31.00 19.ee $12.00 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 7600 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income

Answer 1

Answer:

Requirement 1
Whirly corporation
Net operating income statement
	Total($)	Per unit($)
Sales (8,700 units)	2,69,700	31
Variable expenses(8700*19)	1,65,300	19
contribution margin(sale -v.c)	1,04,400	12
Fixed expenses	55,100
Net operating income	49,300
Requirement 2
Whirly corporation
Net operating income statement
	Total($)	Per unit($)
Sales (8,500 units)	2,63,500	31
Variable expenses(8500*19)	1,61,500	19
contribution margin(sale -v.c)	1,02,000	12
Fixed expenses	55,100
Net operating income	46,900
Requirement 3
Whirly corporation
Net operating income
	Total($)	Per unit($)
Sales (7,600 units)	2,35,600	31
Variable expenses(7600*19)	1,44,400	19
contribution margin(sale -v.c)	91,200	12
Fixed expenses	55,100
Net operating income	36,100