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Whirly Corporation\'s contribution format income statement for the most recent m

ID: 2394046 • Letter: W

Question

Whirly Corporation's contribution format income statement for the most recent month is shown below: Total 163,480 120,400 66,30e Variable expenses Contribution margin $283,800$33.00 19.00 14.0e Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume decreases by 50 units? 3. What would be the revised net operating income per month if the sales volume is 7,600 units? 1. Revised net oper 2. R 3 Revised net operating income

Explanation / Answer

1) Revised Net operating Income $           67,000 Working: Contribution Format Income Statement Total Per Unit Sales (8,650 units) $       2,85,450 $    33.00 Variable Expense $       1,64,350 $    19.00 Contribution Margin $       1,21,100 $    14.00 Fixed Expenses $           54,100 Net operating Income $           67,000 2) Revised Net operating Income $           65,600 Working: Contribution Format Income Statement Total Per Unit Sales (8,550 units) $       2,82,150 $    33.00 Variable Expense $       1,62,450 $    19.00 Contribution Margin $       1,19,700 $    14.00 Fixed Expenses $           54,100 Net operating Income $           65,600 3) Revised Net operating Income $           52,300 Working: Contribution Format Income Statement Total Per Unit Sales (7,600 units) $       2,50,800 $    33.00 Variable Expense $       1,44,400 $    19.00 Contribution Margin $       1,06,400 $    14.00 Fixed Expenses $           54,100 Net operating Income $           52,300