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: Sales (8,300 units) Variable expenses contribution margin Fixed expenses Net operating income Total 257,300 166,000 Per Unit $31.00 20.00 11.00 6 points 91,300 55,400 $35,900 eBook Required: (Consider each case independently): Hint 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units? 3. What would be the revised net operating income per month if the sales volume is 7,300 units? Print References 1 Revised net operating income 2. Revised net operating income 3. Revised net operating income

Explanation / Answer

Ans. 1 Revised Net Operating Income 36780 2 Revised Net Operating Income 35020 3 Revised Net Operating Income 24900 Ans.1 New Sales Volume (8300 + 80)   =   8380 Sales (8380 * 31) 259780 Less: variable cost (8380 * 20) -167600 Contribution margin 92180 Less: Fixed cost -55400 New Operating income 36780 Ans.2 New Sales Volume (8300 - 80)   =   8220 Sales (8220 * 31) 254820 Less: variable cost (8220 * 20) -164400 Contribution margin 90420 Less: Fixed cost -55400 New Operating income 35020 Ans.3 New Sales Volume    =   7300 units Sales (7300 * 31) 226300 Less: variable cost (7300 * 20) -146000 Contribution margin 80300 Less: Fixed cost -55400 New Operating income 24900

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