Whirly Corporation’s most recent income statement is shown below: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): a. The sales volume increases by 100 units. b. The sales volume decreases by 100 units. The sales volume is 9,000 units.
Expert Answer
a.
Total | Per Unit | ||
10100 | Unit | ||
Sales | 353,500 | 35 | |
Less : Variable Expenses | 202,000 | 20 | |
Contribution Margin | 151,500 | 15 | |
Less :Fixed Expenses | 135,000 | ||
Net Operating Income | 16,500 |
b.
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