Question: Please solve these 2 questions by 11:59pm tonight I do not understand so if you could also explain your answer that would be amazing! Thank
Please solve these 2 questions by 11:59pm tonight I do not understand so if you could also explain your answer that would be amazing! Thank you!
1) Whirly Corporations contribution format income statement for the most recent month is shown below:
| Total | Per Unit | |
|---|---|---|
| Sales (7,300 units) | $ 240,900 | $ 33.00 |
| Variable expenses | 138,700 | 19.00 |
| Contribution margin | 102,200 | $ 14.00 |
| Fixed expenses | 55,100 | |
| Net operating income | $ 47,100 |
Required: (Consider each case independently):
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 6,300 units?
2) Last month when Holiday Creations, Incorporated, sold 35,000 units, total sales were $140,000, total variable expenses were $107,800, and fixed expenses were $35,500.
Required:
1. What is the companys contribution margin (CM) ratio?
2. What is the estimated change in the companys net operating income if it can increase sales volume by 525 units and total sales by $2,100? (Do not round intermediate calculations.)
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