FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Please answer complete question, otherwise skip it,,, Please provide answer in text (Without image)arrow_forwardWhirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 33.00 18.00 $ 15.00 Sales (8,800 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): Total $ 290,400 158,400 132,000 54,100 $ 77,900 1. What would be the revised net operating income per month if the sales volume increases by 40 units? 2. What would be the revised net operating income per month if the sales volume decreases by 40 units? 3. What would be the revised net operating income per month if the sales volume is 7,800 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating incomearrow_forwardThe following information relates to Oil Change Company. Oil Change Co. Projected Net Income For a Week Sales (160 cars serviced at $24 per car) Variable Expenses (160 cars at $9 per car) Contribution Margin Fixed Expenses Net Income Calculate the following: (i) Unit Contribution: (ii) Total Contribution: (iii) Break Even Point in Units (iv) Break Even Point in Dollars (v) Net Profit: $3,840 - 1,440 2,400 - 2,400 $ 0arrow_forward
- Dhapaarrow_forwardWhirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $31.00 18.00 $ 13.00 Sales (8,600 units) Variable expenses Contribution, margin Fixed expenses Net operating income Total $ 266,600 154,800 111,800 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 56,000 $ 55,800 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 2. What would be the revised net operating income per month if the sales volume decreases by 90 units? 3. What would be the revised net operating income per month if the sales volume is.7,600 units?arrow_forwardplease step by step solution.arrow_forward
- im.9arrow_forwardMenlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales $ 608, 000 $ 40 Variable expenses 425, 600 28 Contribution margin 182, 400 $ 12 Fixed expenses 154,800 Net operating income $ 27,600 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3- a. How many units would have to be sold each month to attain a target profit of $ 50, 400? 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. 4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. 5. What is the company's CM ratio? If the company can sell more units thereby increasing sales by S 50,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?arrow_forwardI need requirement 4 and 5 onlyarrow_forward
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