Question

Tortoise Corporation’s contribution format income statement for the most recent month is shown below:

	Total			Per Unit
Sales (7,900 units)	$	268,600		$	34.00
Variable expenses		150,100			19.00
Contribution margin		118,500		$	15.00
Fixed expenses		55,700
Net operating income	$	62,800

(pls keep numbered for final answer)

1. What would be the revised net operating income per month if the sales volume increases by 60 units?

2. What would be the revised net operating income per month if the sales volume decreases by 60 units?

3. What would be the revised net operating income per month if the sales volume is 6,900 units?

Answer 1

Contribution margin Income statement
			Total	Pr unit
Sales (7960 units)		270640	34
Variable cost		151240	19
Contrbution margin		119400	15
Fixed expense		55700
Net Operating income		63700
Contribution margin Income statement
			Total	Pr unit
Sales (7840 units)		266560	34
Variable cost		148960	19
Contrbution margin		117600	15
Fixed expense		55700
Net Operating income		61900
Contribution margin Income statement
			Total	Pr unit
Sales (6900 units)		234600	34
Variable cost		131100	19
Contrbution margin		103500	15
Fixed expense		55700
Net Operating income		47800