Whirly Corporation's contribution format income statement for the most recent month is shown below: Total Per...
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Whirly Corporation's contribution format income statement for the most recent month is shown below: Total Per Unit $31.00 Sales (8,600 units) Variable expenses Contribution margin $ 266,600 154,800 111,800 18.00 $ 13.00 Fixed expenses 54,600 Net operating income $ 57,200 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units? 3. What would be the revised net operating income per month if the sales volume is 7,600 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income Last month when Holiday Creations, Inc., sold 39,000 units, total sales were $319,000, total variable expenses were $236,060, and fixed expenses were $36,300. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase total sales by $2,200? (Do not round intermediate calculations.) 1. Contribution margin ratio % 2. Estimated change in net operating income Whirly Corporation's contribution format income statement for the most recent month is shown below: Total Per Unit $31.00 Sales (8,600 units) Variable expenses Contribution margin $ 266,600 154,800 111,800 18.00 $ 13.00 Fixed expenses 54,600 Net operating income $ 57,200 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units? 3. What would be the revised net operating income per month if the sales volume is 7,600 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income Last month when Holiday Creations, Inc., sold 39,000 units, total sales were $319,000, total variable expenses were $236,060, and fixed expenses were $36,300. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase total sales by $2,200? (Do not round intermediate calculations.) 1. Contribution margin ratio % 2. Estimated change in net operating income
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Solution Question 1 1 Revised Net Operating Income 58240 57200 80 units x 13 2 Revised Net Oper... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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