Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Thank you! Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,480 units) Variable expenses Contribution margin Fixed expenses

Thank you!
image text in transcribed
image text in transcribed
Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,480 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 229,400 133,200 96, 200 54,600 $ 41,600 Per Unit $31.00 18.ee $ 13.00 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 6,400 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income Last month when Holiday Creations, Incorporated, sold 38,000 units, total sales were $152,000, total variable expenses were $112.480, and foed expenses were $37,600. 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 sales volume by 425 units and total sales by $1.700? (Do not round intermediate calculations.) 1. Contribution margin ratio 2 Estimated change in het operating income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Commercial Energy Auditing Referance Handbook

Authors: Steve Doty

1st Edition

0881736481, 978-0881736489

More Books

Students also viewed these Accounting questions

Question

The models used to analyse different national cultures.

Answered: 1 week ago

Question

The nature of the issues associated with expatriate employment.

Answered: 1 week ago