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Whirly Corporation's contribution format income statement for the most recent month is shown below: Total $ 226,300 131,400 94,900 54,100 $ 40,800 Per Unit $
Whirly Corporation's contribution format income statement for the most recent month is shown below: Total $ 226,300 131,400 94,900 54,100 $ 40,800 Per Unit $ 31.00 18.00 $ 13.00 Sales (7,300 units) Variable expenses Contribution margin Fixed expenses Net operating income 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 6,300 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income $ 27,800 Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 628,000 439,600 188, 400 146,400 $ 42,000 Per Unit $ 40 28 $ 12 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each month to attain a target profit of $74,400? 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. 4. Refer to the original data. Compute the company's margin of safety in both dollar and ge terms. 5. What is the company's CM ratio? If sales increase by $70,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req Req 3B Req 4 Req 5 What is the monthly break-even point in unit sales and in dollar sales? units Break-even point in unit sales Break-even point in dollar sales
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