FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Whirly Corporation's contribution format income statement for the most recent month is shown below
Sales (7,800 units)
Variable expenses
Total
$ 249,600
140,400
Per Unit
$ 32.00
18.00
Contribution margin
109,200
$14.00
Fixed expenses
55,600
$ 53,600
Net operating income
Required:
(Consider each case independently).
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 6,800 units?
1. Revised net operating income
2. Revised net operating income
3 Revised net operating income
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Transcribed Image Text:p.mheducation.com 05 6 Saved Help S Whirly Corporation's contribution format income statement for the most recent month is shown below Sales (7,800 units) Variable expenses Total $ 249,600 140,400 Per Unit $ 32.00 18.00 Contribution margin 109,200 $14.00 Fixed expenses 55,600 $ 53,600 Net operating income Required: (Consider each case independently). 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 6,800 units? 1. Revised net operating income 2. Revised net operating income 3 Revised net operating income
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Step 1 Introduction

Variable cost is the required cost of production that changes with the change in level of output. Fixed cost remains same with the change in level of output up to a defined limit. 

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