Accounting for Managers week two Homework.docx - Tori Butler Accounting for Managers Professor Benson Week Two Homework Pg 218 E5-1 Whirly

Accounting for Managers week two Homework.docx - Tori...

This preview shows page 1 - 2 out of 2 pages.

Tori Butler Accounting for Managers Professor Benson Week Two Homework September 10, 2018 Pg. 218 E5-1 Whirly Corporation’s most recent income statement 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 Prepare a new contribution format income statement under each of the following conditions (con- sider each case independently): 1. The sales volume increases by 100 units. Total Sales (10,100 units) $353,500 Variable Expenses $202,000 Contribution Margin $151,500 Fixed Expenses $135,000 Net Operating Income $10,500 Sales= 10,100 * 35.00 Variable expense= 10,100 * 20.00 2. The sales volume decreases by 100 units. Total Sales (9,900 units) $346,500 Variable Expenses $198,000 Contribution Margin $143,500 Fixed Expenses $135,000 Net Operating Income $13,500 Sales= 9,900 * 35.00 Variable Expense = 9,900 * 20.00
Image of page 1
3. The sales volume is 9,000 units. Total Sales (9,000 units)
Image of page 2

You've reached the end of your free preview.

Want to read both pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture