Sales (8,400 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 260,400 168,000 92,400 55,100 $ 37,300 Per Unit $31.00 20.00 $ 11.00

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Whirly Corporation's contribution format Income statement for the most recent month is shown below:
Sales (8,400 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 260,400
168,998
Required:
(Consider each case independently):
1. Revised net operating income
2. Revised net operating income
3. Revised net operating income
55, 188
Per Unit
$ 31.08
11.09
1. What would be the revised net operating Income per month of the sales volume Increases by 70 units?
2. What would be the revised net operating income per month if the sales volume decreases by 70 units?
3. What would be the revised net operating income per month if the sales volume is 7,400 units?
Transcribed Image Text:Whirly Corporation's contribution format Income statement for the most recent month is shown below: Sales (8,400 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 260,400 168,998 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 55, 188 Per Unit $ 31.08 11.09 1. What would be the revised net operating Income per month of the sales volume Increases by 70 units? 2. What would be the revised net operating income per month if the sales volume decreases by 70 units? 3. What would be the revised net operating income per month if the sales volume is 7,400 units?
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