USA: +1 (725) 712-1730
USA: +1 (725) 712-1730

Question & Answer: Whirly Corporation’s most recent income statement is shown below:…..

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

Total Per Unit
  Sales (7,500 units) $ 240,000 $ 32.00
  Variable expenses 142,500 19.00
  Contribution margin 97,500 $ 13.00
  Fixed expenses 55,800
  Net operating income $ 41,700
1. The sales volume increases by 30 units.

2. The sales volume decreases by 30 units
3. The sales volume is 6,500 units.

Expert Answer

 

Given Data Case 1 Case 2 Case 3
Units 7500 7530 7470 6500
PU Total Cost Total Cost Total Cost Total Cost
Sales 32 240000 240960 239040 208000 (Units *PU )
Variable Cost 19 142500 143070 141930 123500 (Units *PU )
Contribution Margin 13 97500 97890 97110 84500 Sales-VC
Fixed Cost 55800 55800 55800 55800 Fixed Cost
Net Operating income 41700 42090 41310 28700 Contribution-FC
Still stressed from student homework?
Get quality assistance from academic writers!
Order now