Question

Sales (8,700 units) $ 269,700 $ 31.00 Variable expenses 174,000 20.00 Contribution margin 95,700 $ 11.00 Fixed expenses 54,100 Net operating income $ 41,600 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 90 units

Answer 1

Answer:

Missing word "Required: Prepare a new contribution format Income Statement under each of the following conditions (consider each case independently): 1. The sale volume increases by 90 units. 2. The sales volume decreases by 90 units"

a.        Contribution Income Statement

                                               Total    Per unit

Sales (8,790 units)            $272,490   $31.00

Variable Expenses            $175,800   $20.00

Contribution Margin          $96,690    $11.00

Fixed Expenses                 $54,100

Net Operating Income     $42,590

b.        Contribution Income Statement

                                              Total      Per unit

Sales (8,610 units)             $266,910   $31.00

Variable Expenses            $172,200   $20.00

Contribution Margin          $94,710      $11.00

Fixed Expenses                 $54,100

Net Operating Income     $40,610