chapter 6 - [The following information applies to the questions displayed below Whirly Corporation's most recent income statement is shown below Total

chapter 6 - [The following information applies to the...

This preview shows page 1 - 6 out of 20 pages.

[The following information applies to the questions displayed below.] Whirly Corporation's most recent income statement is shown below: Total Per Unit Sales (7,900 units) $205,400 $26.00 Variable expenses 142,200 18.00 Contribution margin 63,200 $8.00 Fixed expenses 54,800 Net operating income $8,400 Prepare a new contribution format income statement under each of the following conditions (consider each case independently): 1. award: 1 out of 1 point Requirement 1: The sales volume increases by 100 units. (Input all amounts as positive values. Round your per unit values to 2 decimal places. Omit the "$" sign in your response.) Total Per Unit Sales $208,000 $26.00 Variable expenses 144,000 18.00 Contribution margin 64,000 $8.00 Fixed expenses 54,800 Net operating income $9,200 eBook Link
Image of page 1
Worksheet Difficulty: Basic Learning Objective: 06-1 Requirement 1: The sales volume increases by 100 units. (Input all amounts as positive values. Round your per unit values to 2 decimal places. Omit the "$" sign in your response.) Total Per Unit Sales $ $ Variable expenses Contribution margin $ Fixed expenses Net operating income $ Explanation: Sales (8,000 × $26.00) = $208,000 You can get the same net operating income using the following approach. Original net operating income $8,400 Change in contribution margin (100 units × $8.00 per unit) 800 New net operating income $9,200 2. award: 1 out of 1 point
Image of page 2
Requirement 2: The sales volume decreases by 100 units. (Input all amounts as positive values. Round your per unit values to 2 decimal places. Omit the "$" sign in your response.) Total Per Unit Sales $202,800 $26.00 Variable expenses 140,400 18.00 Contribution margin 62,400 $8.00 Fixed expenses 54,800 Net operating income $7,600 eBook Link Worksheet Difficulty: Basic Learning Objective: 06-1 Requirement 2: The sales volume decreases by 100 units. (Input all amounts as positive values. Round your per unit values to 2 decimal places. Omit the "$" sign in your response.) Total Per Unit Sales $ $ Variable expenses Contribution margin $ Fixed expenses Net operating income $ Explanation: Sales (7,800 × $26.00) = $202,800 You can get the same net operating income using the following approach. Original net operating income $8,400
Image of page 3
Change in contribution margin (-100 units × $8.00 per unit) (800) New net operating income $7,600 3. award: 1 out of 1 point Requirement 3: The sales volume is 6,900 units. (Input all amounts as positive values. Round your per unit values to 2 decimal places. Omit the "$" sign in your response.) Total Per Unit Sales $179,400 $26.00 Variable expenses 124,200 18.00 Contribution margin 55,200 $8.00 Fixed expenses 54,800 Net operating income $400 eBook Link Worksheet Difficulty: Basic Learning Objective: 06-1 Requirement 3: The sales volume is 6,900 units. (Input all amounts as positive values. Round your per unit values to 2 decimal places. Omit the "$" sign in your response.) Total Per Unit Sales $ $ Variable expenses Contribution margin $
Image of page 4
Fixed expenses Net operating income $ Explanation: Sales (6,900 × $26.00) = $179,400 Karlik Enterprises distributes a single product whose selling price is $24 and whose variable expense is $18 per unit. The company's monthly fixed expense is $24,000.
Image of page 5
Image of page 6

You've reached the end of your free preview.

Want to read all 20 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes