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Whirly Corporation’s most recent income statement is shown below: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): a. The sales volume increases by 100 units. b. The sales volume decreases by 100 units. The sales volume is 9,000 units.
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Question & Answer: Whirly Corporation's most recent income statement is shown below: Prepare a new contribution format income…..
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a.
| Total | Per Unit | ||
| 10100 | Unit | ||
| Sales | 353,500 | 35 | |
| Less : Variable Expenses | 202,000 | 20 | |
| Contribution Margin | 151,500 | 15 | |
| Less :Fixed Expenses | 135,000 | ||
| Net Operating Income | 16,500 | ||
b.
| Total | Per Unit | ||
| 9900 | Unit | ||
| Sales | 346,500 | 35 | |
| Less : Variable Expenses | 198,000 | 20 | |
| Contribution Margin | 148,500 | 15 | |
| Less :Fixed Expenses | 135,000 | ||
| Net Operating Income | 13,500 | ||
c.
| Total | Per Unit | ||
| 9000 | Unit | ||
| Sales | 315,000 | 35 | |
| Less : Variable Expenses | 180,000 | 20 | |
| Contribution Margin | 135,000 | 15 | |
| Less :Fixed Expenses | 135,000 | ||
| Net Operating Income | |||
