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Thanks, Will like answer Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (8,200 units) Variable expenses Contribution margin
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Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (8,200 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 270,600 155,800 114,800 56,000 $ 58,800 Per Unit $ 33.00 19.00 $ 14.00 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 7,200 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $297,000, total variable expenses were $237,600, and fixed expenses were $37,700. 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 $1,200? (Do not round intermediate calculations.) 1. Contribution margin ratio % 2. Estimated change in net operating incomeStep by Step Solution
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