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...

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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
3. The sales volume is 9,000 units. Total Sales (9,000 units)