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 Sales (7,900 units) $ 252,800$ 32.00 19.00 Variable expenses Contribution margin Fixed expenses Net operating income 150,100 102,700 56,000 $ 13.00 $46,700 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? 3. What would be the revised net operating income per month if the sales volume is 6,900 units? 1.Revised net operating income 2. Revised net operating income 3. Revised net operating income

Explanation / Answer

Particulars Current Part 1 Part 2 Part 3 Sales Units (A)          7,900.00        7,930.00        7,870.00      14,800.00 Contribution Per Unit (B)                13.00              13.00              13.00              13.00 Total Contribution (A x B)     102,700.00    103,090.00    102,310.00    192,400.00 Less: Fixed Cost       56,000.00      56,000.00      56,000.00      56,000.00 Net Operating Income       46,700.00      47,090.00      46,310.00    136,400.00

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