Question

chapter 5 homework
saved help save & exit submit
check my work
2
0.83 points
whirly corporations contribution format income statement for the most recent month is shown below:
total per unit
sales (9,000 units) $ 279,000 $ 31.00
variable expenses 180,000 20.00
contribution margin 99,000 $ 11.00
fixed expenses 55,600
net operating income $ 43,400
required:
(consider each case independently):

1. what would be the revised net operating income per month if the sales volume increases by 60 units?
2. what would be the revised net operating income per month if the sales volume decreases by 60 units?
3. what would be the revised net operating income per month if the sales volume is 8,000 units?
4. revised net operating income
5. revised net operating income
6. revised net operating income

ebook hint print references
mc graw hill
prev 2 of 12 next

Explanation:

Step1: Calculate contribution from 60 units

$\text{Additional contribution} = 60 \times \$11.00 = \$660$

Step2: Find revised income (case1)

$\text{Revised income} = \$43,400 + \$660 = \$44,060$

Step3: Calculate lost contribution (case2)

$\text{Lost contribution} = 60 \times \$11.00 = \$660$

Step4: Find revised income (case2)

$\text{Revised income} = \$43,400 - \$660 = \$42,740$

Step5: Calculate total contribution (8,000 units)

$\text{Total contribution} = 8,000 \times \$11.00 = \$88,000$

Step6: Find revised income (case3)

$\text{Revised income} = \$88,000 - \$55,600 = \$32,400$

Answer:

1. $\$44,060$
2. $\$42,740$
3. $\$32,400$