Question
Whirly Corporations contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,600 units) $ 283,800 $ 33.00 Variable
Whirly Corporations contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,600 units) $ 283,800 $ 33.00 Variable expenses 154,800 18.00 Contribution margin 129,000 $ 15.00 Fixed expenses 54,200 Net operating income $ 74,800 Required: (Consider each case independently):
1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume decreases by 50 units? 3. What would be the revised net operating income per month if the sales volume is 7,600 units?
Mauro Products distributes a single product, a woven basket whose selling price is $27 per unit and whose variable expense is $23 per unit. The companys monthly fixed expense is $8,800.
Required:
1. Calculate the companys break-even point in unit sales.
2. Calculate the companys 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.)
Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next months budget appear below:
Selling price per unit | $ 25 |
---|---|
Variable expense per unit | $ 15 |
Fixed expense per month | $ 8,900 |
Unit sales per month | 1,040 |
Required:
1. What is the companys margin of safety? (Do not round intermediate calculations.)
2. What is the companys margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34).)
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