Question

Sales (8,700 units) $ 269,700 $ 31.00 Variable expenses 174,000 20.00 Contribution margin 95,700 $ 11.00 Fixed expenses 54,100 Net operating income $ 41,600 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 90 units

Answer 1

Missing word "Required: Prepare a new contribution format Income Statement under each of the following conditions (consider each case independently): 1. The sale volume increases by 90 units. 2. The sales volume decreases by 90 units"

a. Contribution Income Statement

Total Per unit

Sales (8,790 units) $272,490 $31.00

Variable Expenses $175,800 $20.00

Contribution Margin $96,690 $11.00

Fixed Expenses $54,100

Net Operating Income $42,590

b. Contribution Income Statement

Total Per unit

Sales (8,610 units) $266,910 $31.00

Variable Expenses $172,200 $20.00

Contribution Margin $94,710 $11.00

Fixed Expenses $54,100

Net Operating Income $40,610