Question
1. Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,200 units) total $223,200 per unit $31.00 Variable expenses
1.
Whirly Corporation's contribution format income statement for the most recent month is shown below:
Sales (7,200 units) total $223,200 per unit $31.00
Variable expenses total 136,800per unit 19.00
Contribution margin total 86,400 per unit $12.00
Fixed expenses total55,600
Net operating income total $30,800
Required:
(Consider each case independently):
1. What would be the revised net operating income per month if the sales volume increases by 40 units?
2. What would be the revised net operating income per month if the sales volume decreases by 40 units?
3. What would be the revised net operating income per month if the sales volume is 6,200 units?
2.
Mauro Products distributes a single product, a woven basket whose selling price is $11 per unit and whose variable expense is $10 per unit. The company's monthly fixed expense is $2,200.
Required:
1. Calculate the company's break-even point in unit sales.
2. Calculate the company's break-even point in dollar sales.(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?(Do not round intermediate calculations.)
3.
Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. (Hint:One way to find the missing amounts would be to make a contribution format income statement for each case, enter the known data, and then compute the missing items.)
Required:
a. Assume that only one product is being sold in each of the four following case situations:
b. Assume that more than one product is being sold in each of the four following case situations:
(For all requirements, Loss amounts should be indicated by a minus sign.)
Answer question by entering your answers in the tabs below.
- Required A
- Required B
Assume that only one product is being sold in each of the four following case situations:
A.
Case#1 Case #2 Case #3 Case #4
Unit sold 9,900 19,300 4,000
Sales $346,500 $360,000 $132,000
Variable expenses 118,800 270,200
Fixed expenses 96,000 161,000 74,000
Net operating income (loss) $(2,600) $90,700 $(10,000)
Contribution margin per unit $11 $9
B.
Case #1 Case #2 Case #3 Case #4
Sales $446,000 $203,000 $291,000
Variable expenses 140,070 84,390
Fixed expenses 57,000 474,000
Net operating income (loss) $60,400 $120,720 $(21,390)
Contribution margin ratio (percent) 40% % 84% %
5.
Miller Company's contribution format income statement for the most recent month is shown below:
Total Per Unit
Sales (32,000 units) $288,000 $9.00
Variable expenses 192,000 6.00
Contribution margin 96,000 $3.00
Fixed expenses 49,000
Net operating income $47,000
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales increase by 20%?
2.What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of units sold increases by 17%?
3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 3%?
4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 6%?
Please help me understand how to solve these problems. I have asked these to tutors multiple times and no one has solved these problems. I am really struggling please do not give up on these problems.
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