In: Accounting
Whirly Corporation’s most recent income statement is shown below: |
Total | Per Unit | ||||
Sales (7,200 units) | $ | 237,600 | $ | 33.00 | |
Variable expenses | 136,800 | 19.00 | |||
Contribution margin | 100,800 | $ | 14.00 | ||
Fixed expenses | 55,400 | ||||
Net operating income | $ | 45,400 | |||
Required: | |
Prepare a new contribution format income statement under each of the following conditions (consider each case independently): |
|
1. |
The sales volume increases by 40 units. |
2. |
The sales volume decreases by 40 units. |
3. |
The sales volume is 6,200 units. |