Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (8,700 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $287,100 156,600 130,500 54,400 $ 76,100 Per Unit $33.00 18.00 $15.00 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 7,700 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income Olongapo Sports Corporation distributes two premium golf ballsFlight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Product Flight Sure Dynamic Shot 750,000 $ 250,000 68% 75% 75% $ Sales CM ratio Total $1,000,000 ? Fixed expenses total $576,000 per month. Required: 1. Prepare a contribution format income statement for the company as a whole. 2. What is the company's break-even point in dollar sales based on the current sales mix? 3. If sales increase by $52,000 a month, by how much would you expect the monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a contribution format income statement for the company as a whole. (Round your percentage answers to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) Flight Dynamic Amount % $ 75,000 100.00 % Sure Shot Amount % $ 250,000 100.00 % Total Company Amount % 325,000 100.00 % Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 75,000 100.00 % $ 250,000 100.00 % 325,000 100.00 % $ 325,000 Lindon Company is the exclusive distributor for an automotive product that sells for $36.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $210,600 per year. The company plans to sell 22,300 units this year. Required: 1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.) 2. What is the break-even point in unit sales and in dollar sales? 3. What amount of unit sales and dollar sales is required to attain a target profit of $102,600 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.60 per unit. What is the company's new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $102,600? 1. Variable expense per unit 2. Break-even point in units Break-even point in dollar sales 3. Unit sales needed to attain target profit Dollar sales needed to attain target profit New break-even point in unit sales New break-even point in dollar sales Dollar sales needed to attain target profit
