Reference no: EM132611440
Make a Contribution Format Income Statement
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
Required:
Problem a: Make a new contribution format income statement under each of the following conditions (consider each case independently):
1. The sales volume increases by 100 units.
2. The sales volume decreases by 100 units.
3. The sales volume is 9,000 units.