Whirly Corporations most recent income statement is shown below: Required: Prepare a new contribution format income statement

Question:

Whirly Corporation’s most recent income statement is shown below:

Total Per Unit Sales (10,000 units) $350,000 $35.00 Variable expenses 200,000 20.00 Contribution margin $15.00 150,000 F

Required:

Prepare a new contribution format income statement under each of the following conditions (consider each case independently):

1. The sales volume increases by 100 units.

2. The sales volume decreases by 100 units.

3. The sales volume is 9,000 units.

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Managerial Accounting

ISBN: 978-0697789938

13th Edition

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

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Question Posted: Jun 28, 2011 03:25 AM

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Whirly Corporations most recent income statement is shown below: Required: Prepare a new contribution format income statement

Question:

Total Per Unit Sales (10,000 units) $350,000 $35.00 Variable expenses 200,000 20.00 Contribution margin $15.00 150,000 Fixed expenses 135,000 $ 15,000 Net operating income

Step by Step Answer:

1 The new income statement would be Total Per Unit Sales 10100 units 353500 3500 Variable expenses 2...View the full answer

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