6 Wheeler Corporation\'s most recent income statement follows Total Per Unit 221

Question

6 Wheeler Corporation's most recent income statement follows Total Per Unit 221,760 Sales (8,400 units) Variable expenses Contribution margin $26.40 147,000 17.50 74,760 8.90 54,400 Fixed expenses Net operating income 20,360 Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): 1. The sales volume increases by 90 units. (Input all amounts as positive values except losses which should be indicated by a minus sign.) Contribution Income Statement Total Click to select (Click to select (Click to select) (Click to select (Click to select) 2. The sales volume declines by 90 units. (Input all amounts as positive values except losses which should be indicated by a minus sign.)

Explanation / Answer

a) Total per unit Sales (8490 units) 224136 26.4 Variable expense 148575 17.5 contribution margin 75561 8.9 fixed expense 54400 net operting income 21161 b) Total per unit Sales (8310 units) 219384 26.4 Variable expense 145425 17.5 contribution margin 73959 8.9 fixed expense 54400 net operting income 19559 c) Total per unit Sales (7400 units) 195360 26.4 Variable expense 129500 17.5 contribution margin 65860 8.9 fixed expense 54400 net operting income 11460

Related Questions

Navigate

• Browse (All)
• Browse 6
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.