1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ymorist [56]
2 years ago
11

Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,600

units) $ 235,600 $ 31.00 Variable expenses 144,400 19.00 Contribution margin 91,200 $ 12.00 Fixed expenses 54,100 Net operating income $ 37,100 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units? 3. What would be the revised net operating income per month if the sales volume is 6,600 units?
Business
1 answer:
fgiga [73]2 years ago
4 0

Answer:

Whirly Corporation

1. The revised net operating income per month if the sales volume increases by 80 units is:

= $38,060.

2. The revised net operating income per month if the sales volume decreases by 80 units is:

= $ 36,140

3. The revised net operating income per month if the sales volume is 6,600 units is:

= $ 25,100

Explanation:

a) Data and Calculations:

Whirly Corporation's Contribution Format Income Statement for the most recent month:

                                                            Total        Unit

Total Per Unit Sales (7,600 units) $ 235,600 $ 31.00

Variable expenses                             144,400    19.00

Contribution margin                            91,200 $ 12.00

Fixed expenses                                   54,100

Net operating income                      $ 37,100

1. Revised Net Operating Income per month with increased sales volume by 80:

                                                            Total        Unit

Total Per Unit Sales (7,680 units) $ 238,080 $ 31.00

Variable expenses                             145,920    19.00

Contribution margin                            92,160 $ 12.00

Fixed expenses                                   54,100

Net operating income                      $ 38,060

2. Revised Net Operating Income per month with decreased sales volume by 80:

                                                            Total        Unit

Total Per Unit Sales (7,520 units)  $ 233,120 $ 31.00

Variable expenses                             142,880    19.00

Contribution margin                           90,240 $ 12.00

Fixed expenses                                   54,100

Net operating income                      $ 36,140

3. The revised net operating income per month if the sales volume is 6,600 units:

                                                            Total        Unit

Total Per Unit Sales (6,600 units) $ 204,600 $ 31.00

Variable expenses                             125,400    19.00

Contribution margin                           79,200 $ 12.00

Fixed expenses                                   54,100

Net operating income                     $ 25,100

You might be interested in
Lupine Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. T
Anna [14]

Answer:

Allocated MOH= $420

Explanation:

<u>First, we need to calculate the predetermined overhead rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (253,600/31,700) + 6

Predetermined manufacturing overhead rate= $14 per machine hour

<u>Now, we can allocate overhead to Job L716:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 14*30

Allocated MOH= $420

5 0
3 years ago
Ramon funds small businesses that he believes have the potential to grow large. when these companies are still in their initial
Delicious77 [7]
<span>The fact that Ramon funds small businesses that he believes have the potential to grow large and when these companies are still in their initial stages and need investment, he buys their stocks at a low price and later sells them at higher prices when they are successful means that Ramon is a venture capitalist. The term venture capitalist in economics describes a person who i</span>nvests in a business venture, providing capital for start-up or expansion. 
8 0
3 years ago
Read 2 more answers
Which statement is FALSE? Select one: a. Diluted EPS is never higher than Basic EPS b. Use of the "Treasury Stock Method" determ
7nadin3 [17]

Answer:

big pp

Explanation:

very small pp

6 0
3 years ago
Which bank does not charge at all for using the ATM?
const2013 [10]
Bank A is the answer
6 0
3 years ago
Clare, a florist, opened a new store and wanted to purchase a new refrigeration display cabinet for fresh-flower arrangements. S
stira [4]

The question is incomplete:

Clare, a florist, opened a new store and wanted to purchase a new refrigeration display cabinet for fresh-flower arrangements. She entered into a deal with Alpha Refrigeration Systems for two refrigeration units at $600 each. But, after delivering the units, the salesperson demanded another $100 as delivery charges, which was not mentioned in the deal. Identify the win-lose strategy used by the salesperson.

-Good guy-bad guy routine

-Browbeating

-Red herring

-Trial balloon

-Lowballing

Answer:

-Red herring

Explanation:

-Goog buy-bad guy routine is a strategy in which one person appears to be on your side and when you get to an agreement, this person goes to the bad guy for approval who will renegotiate.

-Browbeating is a strategy in which the buyer tries to affect the saleperson atittude by saying unflattering things.

-Red herring is a strategy in which one of the parties tries to distract the other one from certain isues to get an advantage.

-Trial balloon is an strategy in which one of the parties says something to the other one to get information about its position in the negotiation.

-Lowballing is an strategy in which the buyer makes a really low offer to test the seller.

According to the definitions, the answer is that the win-lose strategy used by the salesperson is red herring because Clara didn't consider the information related to the delivery when purchasing the units as she was probably distracted by other aspects and didn't consider this.

5 0
2 years ago
Other questions:
  • Metlock Company took a physical inventory on December 31 and determined that goods costing $185,000 were on hand. Not included i
    15·1 answer
  • All of the following statements regarding a voucher system are incorrect except _____.
    7·1 answer
  • An increase in government spending of $200 million financed by a new tax of $200 million in an economy with a marginal propensit
    12·1 answer
  • As a result of the rising interest rates in this example, Businesses choose to reduce their Investment Spending by $_________ bi
    5·1 answer
  • What is the best way to display data if you have more than 10 results?​
    14·1 answer
  • The overall process of dealing with all aspects of acquiring, keeping, and growing customers is referred to as ________.
    5·1 answer
  • PROBLEM 5 You have to design the system interconnection network of a multicomputer system. Your choices are to use an Omega or a
    13·1 answer
  • Which would be processed as an exception to the payment rate typically calculated according to the Federally Qualified Health Ce
    14·1 answer
  • The owner of a national software company has been watching current economic information for the past two quarters and a rapid ri
    5·1 answer
  • if government tax policy requires peter to pay $15,000 in tax on annual income of $200,000 and paul to pay $10,000 in tax on ann
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!