Answer:
Whirly Corporation
1. The revised net operating income per month if the sales volume increases by 80 units is:
= $38,060.
2. The revised net operating income per month if the sales volume decreases by 80 units is:
= $ 36,140
3. The revised net operating income per month if the sales volume is 6,600 units is:
= $ 25,100
Step-by-step explanation:
a) Data and Calculations:
Whirly Corporation's Contribution Format Income Statement for the most recent month:
Total Unit
Total Per Unit Sales (7,600 units) $ 235,600 $ 31.00
Variable expenses 144,400 19.00
Contribution margin 91,200 $ 12.00
Fixed expenses 54,100
Net operating income $ 37,100
1. Revised Net Operating Income per month with increased sales volume by 80:
Total Unit
Total Per Unit Sales (7,680 units) $ 238,080 $ 31.00
Variable expenses 145,920 19.00
Contribution margin 92,160 $ 12.00
Fixed expenses 54,100
Net operating income $ 38,060
2. Revised Net Operating Income per month with decreased sales volume by 80:
Total Unit
Total Per Unit Sales (7,520 units) $ 233,120 $ 31.00
Variable expenses 142,880 19.00
Contribution margin 90,240 $ 12.00
Fixed expenses 54,100
Net operating income $ 36,140
3. The revised net operating income per month if the sales volume is 6,600 units:
Total Unit
Total Per Unit Sales (6,600 units) $ 204,600 $ 31.00
Variable expenses 125,400 19.00
Contribution margin 79,200 $ 12.00
Fixed expenses 54,100
Net operating income $ 25,100