Whirly Corporation's contribution format Income statement for the most recent month is shown below:Sales (8,400 units)Variable expensesContribution marginFixed expensesNet operating incomeTotal$ 260,400168,998Required:(Consider each case independently):1. Revised net operating income2. Revised net operating income3. Revised net operating income55, 188Per Unit$ 31.0811.091. What would be the revised net operating Income per month of the sales volume Increases by 70 units?2. What would be the revised net operating income per month if the sales volume decreases by 70 units?3. What would be the revised net operating income per month if the sales volume is 7,400 units?

The company's financial performance over a specific time period is explained in the income…

Answered: Sales (8,400 units) Variable expenses…

Sales (8,400 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 260,400 168,000 92,400 55,100 $ 37,300 Per Unit $31.00 20.00 $ 11.00

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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Question

Whirly Corporation's contribution format Income statement for the most recent month is shown below:
Sales (8,400 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 260,400
168,998
Required:
(Consider each case independently):
1. Revised net operating income
2. Revised net operating income
3. Revised net operating income
55, 188
Per Unit
$ 31.08
11.09
1. What would be the revised net operating Income per month of the sales volume Increases by 70 units?
2. What would be the revised net operating income per month if the sales volume decreases by 70 units?
3. What would be the revised net operating income per month if the sales volume is 7,400 units?

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