1. What would be the revised net operating income per month if the sales volume increases by 70 units? 2. What would be the revised net operating income per montip if the sales volume decreases by 70 units? 3. What would be the revised net operating income per month if the sales volume is 7.000 units?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Whirly Corporation's contribution format income statement for the most recent month is shown
below:
Sales (8,000 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 272,000
152, 000
120, 000
54,700
$ 65,300
Required:
(Consider each case independently):
Per Unit
$34.00
19.00
$15.00
1. What would be the revised net operating income per month if the sales volume increases by 70
units?
2. What would be the revised net operating income per montii if the sales volume decreases by 70
units?
3. What would be the revised net operating income per month if the sales volume is 7.000 units?
Transcribed Image Text:Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (8,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 272,000 152, 000 120, 000 54,700 $ 65,300 Required: (Consider each case independently): Per Unit $34.00 19.00 $15.00 1. What would be the revised net operating income per month if the sales volume increases by 70 units? 2. What would be the revised net operating income per montii if the sales volume decreases by 70 units? 3. What would be the revised net operating income per month if the sales volume is 7.000 units?
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