Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total   Per Unit Sales (7,500 units) $ 290500   $ 35.00   Variable expenses   149400     18.00   Contribution margin   141100   $ 17.00   Fixed expenses   54,100         Net operating income $ 87000 (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 7300 units?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Whirly Corporation’s contribution format income statement for the most recent month is shown below:

Total   Per Unit
Sales (7,500 units) $ 290500   $ 35.00  
Variable expenses   149400     18.00  
Contribution margin   141100   $ 17.00  
Fixed expenses   54,100        
Net operating income $ 87000

(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 7300 units?

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