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

Question

Whirly Corporation's contribution format income statement for the most recent month is shown below Total Per Unit 200,000 20.00 150,000 $15.00 Sales (10,000 units) 5 350,000 $35.00 Variable expenses Contribution margin Fixed expenses Net operating income $ 15,0ee Required: Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 100 units? 2. What would be the revised net operating income per month if the sales volume decreases by 100 units? 3. What would be the revised net operating income per month if the sales volume is 9,000 units? 1 Revised net operating income 2. Revised net operating income 3. Revised net operating income

Explanation / Answer

1 Per unit Total Sales 35 353500 Variable expenses 20 202000 Contribution margin 15 151500 Fixed expenses 135000 Revised net operating income 16500 2 Per unit Total Sales 35 346500 Variable expenses 20 198000 Contribution margin 15 148500 Fixed expenses 135000 Revised net operating income 13500 3 Per unit Total Sales 35 315000 Variable expenses 20 180000 Contribution margin 15 135000 Fixed expenses 135000 Revised net operating income 0

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