90.2K

Verified Solution

Link Copied!

Exercise 5-2 (Algo) The Effect of Changes in Unit Sales on Net Operating Income [LO5-2 Whirly Corporation's contribution format income statement for the most recent month is shown below: 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 7,100 units? Mauro Products sells a woven basket for $28 per unit. Its variable expense is $23 per unit and the company's monthly fixed expense is $7,000. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. Note: Do not round intermediate calculations. 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? Note: Do not round intermediate calculations. Lin Corporation has a single product whose selling price is $134 per unit and whose variable expense is $67 per unit. The company's monthly fixed expense is $31,750. Required: 1. Calculate the unit sales needed to attain a target profit of $8,450. Note: Do not round intermediate calculations. 2. Calculate the dollar sales needed to attain a target profit of $9,700. Note: Round your intermediate calculations to the nearest whole number

Answer & Explanation Solved by verified expert

See Answer