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Whirly corporation most recent income statement is shown below: Total Per Unit Sales (7,600 units) 243,200 32.00 Variable Expenses...

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Accounting

Whirly corporation most recent income statement is shownbelow:

Total Per Unit

Sales (7,600 units) 243,200 32.00

Variable Expenses 144,400 19.00

Contribution Margin 98,800

Fixed Expenses 55,300

Net Operating Income 43,500

Required:

Prepare a new contribution format income statement under each ofthe following conditions (consider each case independently):

1. The sales volume increases by 60 units

2. The Sales Volume decreases by 60 units

3. The Sales Volume is 6,600

Answer & Explanation Solved by verified expert
3.6 Ratings (621 Votes)

1 Revised net operating income at when units increased by 60 $      44,280.00
2 Revised net operating income at when units decreased by 60 $      42,720.00
3 Revised net operating income when sales volume is 6600 units $      30,500.00
Contribution margin income statement
Per unit Total at 7660 units Total at 7540 units Total at 6600 units
Sales $     32.00 $ 2,45,120.00 $ 2,41,280.00 $ 2,11,200.00
Variable cost $     19.00 $ 1,45,540.00 $ 1,43,260.00 $ 1,25,400.00
Contribution margin $     13.00 $      99,580.00 $      98,020.00 $      85,800.00
Fixed expenses $      55,300.00 $      55,300.00 $      55,300.00
Net operating income $      44,280.00 $      42,720.00 $      30,500.00

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