Whirly Corporation’s most recent income statement is shown below: Prepare a new
ID: 2426675 • Letter: W
Question
Whirly Corporation’s most recent income statement is shown below:
Prepare a new contribution format income statement under each of the following conditions (consider each case independently):
The sales volume increases by 90 units.
The sales volume decreases by 90 units.
The sales volume is 7,000 units.
Total Per Unit Sales (8,000 units) $ 280,000 $ 35.00 Variable expenses 152,000 19.00 Contribution margin 128,000 $ 16.00 Fixed expenses 55,100 Net operating income $ 72,900
Explanation / Answer
Total
Per Unit
Sales (8,090 units)
$
283,150
$
35.00
Variable expenses
153,710
19.00
Contribution margin
129,440
$
16.00
Fixed expenses
55,100
Net operating income
$
74,340
Total
Per Unit
Sales (7,910 units)
$
276,850
$
35.00
Variable expenses
150,290
19.00
Contribution margin
126,560
$
16.00
Fixed expenses
55,100
Net operating income
$
71,460
Total
Per Unit
Sales (7,000 units)
$
245,000
$
35.00
Variable expenses
133,000
19.00
Contribution margin
112,000
$
16.00
Fixed expenses
55,100
Net operating income
$
56,900
Total
Per Unit
Sales (8,090 units)
$
283,150
$
35.00
Variable expenses
153,710
19.00
Contribution margin
129,440
$
16.00
Fixed expenses
55,100
Net operating income
$
74,340
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