Ask Question
29 June, 15:50

Whirly Corporation's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (10,000 units) $ 350,000 $ 35.00 Variable expenses 200,000 20.00 Contribution margin 150,000 $ 15.00 Fixed expenses 135,000 Net operating income $ 15,000 What would be the revised net operating income per month if the sales volume increases by 100 units?

+5
Answers (2)
  1. 29 June, 17:09
    0
    Answer: $16500

    Explanation:

    Given that,

    Total Sales (10,000 units) = $350,000

    Total Variable expenses = 200,000

    Total Contribution margin = 150,000

    Fixed expenses = 135,000

    Net operating income = $15,000

    If sales volume increases by 100 units, then total units sold = 10,100 units

    So,

    Total sales = 10100 * $35 = $353,500

    Total variable Expenses = 10100 * $20 = $202,000

    Contribution Margin = Total sales - Total variable Expenses

    = 353500 - 202000

    =151500

    ∴ Revised net operating income = Contribution Margin - Fixed expenses

    = 151500 - 135,000

    = $16,500
  2. 29 June, 17:12
    0
    Current Sales = 10,000 unis

    Sales after volume increases by 100 units = 10,000 + 100

    = 10,100

    Whirly Corporation's Contribution Format Income Statement

    Sales revenue (10,100 units @ $ 35 per unit) $ 353,500

    - Variable expenses (10,100 @ $ 20 per unit) $ 202,000

    Contribution Margin (10,100 @ $ 15 per unit) $ 151,500

    - Fixed expenses $ 135,000

    Net Operating Income per month $ 16,500

    Explanation:

    Refer to the answer.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Whirly Corporation's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (10,000 units) $ ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers