Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Whirly Corporation's contribution format income statement for the most recent month is shown below: Total Per Unit $32.00 Sales (7,400 units) 236,800 140,600 Variable expenses
Whirly Corporation's contribution format income statement for the most recent month is shown below: Total Per Unit $32.00 Sales (7,400 units) 236,800 140,600 Variable expenses 19.00 13.00 Contribution margin 96,200 Fixed expenses 55,700 $ 40,500 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 6,400 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income Required information The following information applies to the questions displayed below. Data for Hermann Corporation are shown below: Percent of Sales Per Unit $120 78 Selling price Variable expenses 100% 65 $ 42 35% Contribution margin Fixed expenses are $84,000 per month and the company is selling 2,600 units per month Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,900 and monthly sales increase by $19,500? 1-b. Should the advertising budget be increased? Required information The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Per Unit Sales 100% Selling price Variable expenses $120 65 78 35% $ 42 Contribution margin Fixed expenses are $84,000 per month and the company is selling 2,600 units per month 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $5 per unit and increase unit sales by 20%, 2-b. Should the higher-quality components be used
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started