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dimaraw [331]
2 years ago
14

Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,500

units) $ 263,500 $ 31.00 Variable expenses 161,500 19.00 Contribution margin 102,000 $ 12.00 Fixed expenses 55,200 Net operating income $ 46,800 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume decreases by 50 units? 3. What would be the revised net operating income per month if the sales volume is 7,500 units?
Business
1 answer:
FinnZ [79.3K]2 years ago
6 0

Answer and Explanation:

The calculation of the revised net operating income per month in the following cases:

1. The sales volume increases by 50 units.

Sales revenue (8,550 units × $31) $265,050

Less: Variable expenses (8,550 units × $19) $162,450

Contribution margin $102,600

Less: Fixed expenses $55,200

Net operating income $47,400

2. The sales volume decreases by 50 units.

 Sales revenue (8,450 units × $31) $261,950

Less: Variable expenses (8,450units × $19) $160,550

Contribution margin $101,400

Less: Fixed expenses $55,200

Net operating income $46,200

3. The sales volume is 7,500 units.

 Sales revenue (7,500 units × $31) $232,500

Less: Variable expenses (7,500 units × $19) $142,500

Contribution margin $90,000

Less: Fixed expenses $55,200

Net operating income $34,800

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True or false. The financial crisis hastened the ongoing process in which the financial services industry was transforming from
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Assume that on December 31, 2019, Kimberly-Clark Corp. signs a 10-year, non-cancelable lease agreement to lease a storage buildi
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a) the journal entry to record the signing of the lease agreement:

December 31, 2019, lease agreement signed

Dr Right of use 483,360

   Cr Lease liability 483,360

the lease liability must record the present value of the 10 annual lease payments: $68,099 and 8% discount rate:

present value of an annuity due = payment + {payment x [1 - (1 + r)⁻⁽ⁿ⁻¹⁾]/r}

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the journal entries to record the annual lease payments:

December 31, 2019, first annual lease payment

Dr Lease liability 66,699

   Cr Cash 66,699

December 31, 2020, second annual lease payment

Dr Lease liability 33,366

Dr Interest expense 33,333

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interest expense = $416,661 x 8% = $33,333

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Dr Depreciation expense - leased building 48,336

   Cr Accumulated depreciation - leased building 48,336

December 31, 2021, third annual lease payment

Dr Lease liability 36,035

Dr Interest expense 30,664

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interest expense = $383,295 x 8% = $30,664

December 31, 2021, depreciation expense

 Dr Depreciation expense - leased building 48,336

   Cr Accumulated depreciation - leased building 48,336

b) this would increase the right to use asset and lease liability by:

= -$5,000 + $1,000 = $4,000

c) this would increase the right to use asset and lease liability by:

= 5,000 + {5,000 x [1 - (1 + 0.08)⁻⁹]/0.08} = $36,234

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