Question

Exercise 5-1 Preparing a Contribution Format Income Statement [LO5-1] Whirly Corporation's most recent income statement is shown below: Sales (7,900 units) Variable expenses Total $ 260,700 150,100 Per Unit $33.00 19.00 $ 14.00 Contribution margin Fixed expenses 110,600 54,700 Net operating income $ 55,900

Answer 1

Whirly corporation Contribution Income statement Total Per Unit sales $262,680 $33.00 Less: Variable expenses $151,240 $19.00 Contribution Margin $ 111,440 $14.00 less: fixed expenses. $54,700 Het operating income $56,740 calculation: sales volume increases by 60 units so, sales volume = 7 goo units + 60 unite as 7,960 units Sales & Units sold & sales per unit = 7,960 units & $33 z $ 262,680 Variable expenses a Units sold x variable cost & 7, 960 units & $19 a $151,240 per unit

Whirley Corporation Contribution Income statement Total per Unit Sales $258,720 $33.00 hess: Variable expenses $ 148,960 $ 19.00 - Contribution Margin $ 109,760 & 14.00 Less: fixed expenses $ 54,700 Net operating income $55,060 Calculation: Sales volume decreases by 60 units. so, sales volume = 7900 units - 60 units = 7,840 units Sales = Units sold & sales Price per Unit & 7,040 units & $33 - $258,720 Variable expenses = Units sold & Variable cost per unit - 7,840 units X & 19 = $148,960

Whirly comporation Contribution Income statement Total Per Unit sales $ 227,700 $33.00 less: Variable expenses $ 131,100 $ 19.00 Contribution Margin $ 96,600 $14.00 Less: fixed expenses $ 54,700 Net Operating Income 1$ 41, goo Calculation : Sales volume is 6,900 units so, xales = sales, per unit & Units sold = $33 x 6,900 units = $227,700 Variable expenses = Units sold & variable cost per unit - 6,900 units & $19. = $131,100 Price