Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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).)

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_2

Step: 3

blur-text-image_3

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

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

16th edition

1259307417, 978-1260153132, 1260153134, 978-1259307416

More Books

Students also viewed these Accounting questions

Question

What appraisal intervals are often used in appraisal reviews?

Answered: 1 week ago

Question

What are the various alternatives?

Answered: 1 week ago