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 Tot al Sales (8, 700 mits) Variable expenses Contribution margin Fixed expenses Net operating income Per Uhit $32.00 19.00 $13.00 $278, 400 165, 300 13, 100 $ 57, 200 Required: Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 30 units? 2. What would be the revised net operating income per month if the sales volume decreases by 30 units? . What would be the revised net operating income per month if the sales volume is 7.700 units? 1.Revised net operating income 2. Revised net operating income 3. Revised net operating income

Explanation / Answer

Fixed costs and variable cost/unit do not change with change in units.

Case1 Case 2 Case 3 Contribution margin (13*(8700+30))=$113490 13*(8700-30)=$112710 (13*7700)=$100100 Fixed costs 55900 55900 55900 Net operating income $57590 $56810 $44200

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