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Question & Answer: Whirly Corporation's most recent income statement is shown below: Required: Prepare a new contri…..

Whirly Corporations most recent income statement is shown below Sales (8,700 units) Variable expenses TotalPer Unit $278,400$32.00 19.00 165,300 Contribution margin Fixed expenses 113,100 $13.00 55,700 Net operating income $ 57,400 Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently) a. The sales volume increases by 70 units Whirly Corporation Contribution Income Statement Total Per Unit b. The sales volume decreases by 70 units Whirly Corporation Contribution Income Statement Total Per Unit c. The sales volume is 7,700 units Whirly Corporation Contribution Income Statement Total Per Unit

Whirly Corporation’s most recent income statement is shown below: Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): a. The sales volume increases by 70 units. b. The sales volume decreases by 70 units. c. The sales volume is 7, 700 units.

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a.

8770 Unit Per Unit
Sales 280,640 32
Less : Variable Expenses 166,630 19
Contribution Margin 114,010 13
Less :Fixed Expenses 55,700
Net Operating Income 58,310

b.

8630 Unit Per Unit
Sales 276,160 32
Less : Variable Expenses 163,970 19
Contribution Margin 112,190 13
Less :Fixed Expenses 55,700
Net Operating Income 56,490

c.

7700 Unit Per Unit
Sales 246,400 32
Less : Variable Expenses 146,300 19
Contribution Margin 100,100 13
Less :Fixed Expenses 55,700
Net Operating Income 44,400

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