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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?

Respuesta :

PHEN0MENAL1

Answer:

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.

Tundexi

The revised net operating income per month is $16,500.

Here, we are to calculate the revised net operating income per month if the sales volume increases by 100 units.

Given Information

Current Sales = 10,000 units

The sales unit after the volume increases by 100 units is 10,100 units (10,000 + 100)

                Contribution Format Income Statement

Particulars                                                                    Amount

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

Less: Variable expenses (10,100*$20 per unit)          $202,000

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

Less: Fixed expenses                                                   $135,000

Net Operating Income                                                 $16,500

Thus, the revised net operating income per month is $16,500.

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