Question

Whirly Corporation's contribution format income statement for the most recent month is shown below. Sales (8,100 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 275,400 162,000 113,400 54,600 $ 58,800 Per Unit $ 34.00 20.ee $ 14.00 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 30 units? 2. What would be the revised net operating income per month if the sales volume decreases by 30 units? 3. What would be the revised net operating income per month if the sales volume is 7100 units? 1. Revised net operating income 2 Revised niet operating income 3. Revised net operating income

Answer 1

А B Amount $ 276,420 $ 162,600 $ 113,820 $ 54,600 $ 59,220 1 1) 2 Particulars 3 Sales 4 Variable expenses 5 Contribution margin 6 Fixed expenses 7 Revised net operating income 8 9 2) 10 Particulars 11 Sales 12 Variable expenses 13 Contribution margin 14 Fixed expenses 15 Revised net operating income 16 17 3) 18 Particulars 19 Sales 20 Variable expenses 21 Contribution margin 22 Fixed expenses 23 Revised net operating income Amount $ 274,380 $ 161,400 $ 112,980 $ 54,600 $ 58,380 Amount $ 241,400 $ 142,000 $ 99,400 $ 54,600 $ 44,800

A B Amount =+(8100+30)*34 =+(8100+30)*20 =+B3-B4 54600 =+B5-B6 1 1) 2 Particulars 3 Sales 4 Variable expenses 5 Contribution margin 6 Fixed expenses 7 Revised net operating income 8 9 2) 10 Particulars 11 Sales 12 Variable expenses 13 Contribution margin 14 Fixed expenses 15 Revised net operating income 16 17 3) 18 Particulars 19 Sales 20 Variable expenses 21 Contribution margin 22 Fixed expenses 23 Revised net operating income Amount =+(8100-30)*34 =+(8100-30)*20 =+B11-B12 54600 =+B13-B14 Amount =7100*34 1=7100*20 =+B19-B20 54600 =+B21-B22