Whirly Corporations contribution format income statement for the most recent month is shown below: Sales (9,000 units)
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Question:
Whirly Corporation’s contribution format income statement for the most recent month is shown below:
Sales (9,000 units) | $ 306,000 | $ 34.00 |
---|---|---|
Variable expenses | 171,000 | 19.00 |
Contribution margin | 135,000 | $ 15.00 |
Fixed expenses | 55,100 | |
Net operating income | $ 79,900 |
Required:
(Consider each case independently):
1. What would be the revised net operating income per month if the sales volume increases by 100 units?
2. What would be the revised net operating income per month if the sales volume decreases by 100 units?
3. What would be the revised net operating income per month if the sales volume is 8,000 units?
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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