Question

Whirly Corporation’s most recent income statement is shown below:

Whirly Corporation's most recent income statement is shown below: Total Per Unit $221,200 $3200 Sales (7,100 units) points Variable expenses 127,800 18.00 eBook $ 14.00 Hint Contribution margin Fixed expenses 99,400 55,000 Print References Net operating income $44,400

Answer 1

1.

	Total	per unit
Sales (7100+80)*32	229,760	32
Variable cost	129,240	18
Contribution margin	100,520	14
Fixed cost	55,000
Net operating income	45,520

2.

	Total	per unit
Sales	224,640	32
Variable cost	126,360	18
Contribution margin	98,280	14
Fixed cost	55,000
Net operating income	43,280

3.

	Total	per unit
Sales	195,200	32
Variable cost	97,600	18
Contribution margin	97,600	14
Fixed cost	55,000
Net operating income	42,600

Answer 2

Req 1:	Revised Net Operating Income	45,520
Req 2:	Revised Net Operating Income	43,280
Req 3:	Revised Net Operating Income	30,400

Working Note :

Req 1:	Contribution Income Statement
		Total	Per   Unit
	Sales	$        229,760	$                    32	(7100+80)*32
	Less: Variable expenses	129,240	18	(7100+80)*18
	Contribution margin	100,520	14
	Less:Fixed expenses	55,000
	Net operating income	$          45,520
Req 2:	Contribution Income Statement
		Total	Per   Unit
	Sales	$        224,640	$                    32	(7100-80)*32
	Less: Variable expenses	126,360	$                    18	(7100-80)*18
	Contribution margin	98,280	14
	Less:Fixed expenses	55,000
	Net operating income	$          43,280
Req 3:	Contribution Income Statement
		Total	Per   Unit
	Sales	$        195,200	$                    32	(6100*32)
	Less: Variable expenses	109,800	$                    18	(6100*18)
	Contribution margin	85,400	14
	Less:Fixed expenses	55,000
	Net operating income	$          30,400