1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume decreases by 50 units? 3. What would be the revised net operating income per month if the sales volume is 6,900 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:
Per Unit
$ 35.00
19.00
$16.00
Sales (7,900 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 276,500
150, 100
126,400
55,200
$ 71,200
Required:
(Consider each case independently):
1. Revised net operating income
2. Revised net operating income
3. Revised net operating income
1. What would be the revised net operating income per month if the sales volume increases by 50 units?
2. What would be the revised net operating income per month if the sales volume decreases by 50 units?
3. What would be the revised net operating income per month if the sales volume is 6,900 units?
Transcribed Image Text:Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 35.00 19.00 $16.00 Sales (7,900 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 276,500 150, 100 126,400 55,200 $ 71,200 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume decreases by 50 units? 3. What would be the revised net operating income per month if the sales volume is 6,900 units?
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