Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hello! Im having trouble with this practice problem. Any help is greatly appreciated. 1. 2. 3. 4. Whirly Corporation's contribution format income statement for the
Hello! Im having trouble with this practice problem. Any help is greatly appreciated.
1.
2.
3.
4.
Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (8,100 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 243,000 153,900 89,100 56,000 $ 33, 100 Per Unit $ 30.00 19.00 $ 11.00 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 2. What would be the revised net operating income per month if the sales volume decreases by 90 units? 3. What would be the revised net operating income per month if the sales volume is 7,100 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income Last month when Holiday Creations, Inc., sold 42,000 units, total sales were $282,000, total variable expenses were $222,780, and fixed expenses were $35,300. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase total sales by $2,000? (Do not round intermediate calculations.) % 1. Contribution margin ratio 2. Estimated change in net operating income Mauro Products distributes a single product, a woven basket whose selling price is $17 per unit and whose variable expense is $15 per unit. The company's monthly fixed expense is $5,600. 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.) baskets 1. Break-even point in unit sales 2. Break-even point in dollar sales 3. Break-even point in unit sales Break-even point in dollar sales baskets Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month $ 24 $ 14 $ 9,000 1,050 Required: 1. What is the company's margin of safety? (Do not round intermediate calculations.) 2. What is the company's margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) 1. Margin of safety (in dollars) 2. Margin of safety percentage %Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started