Question
1. If sales decline to 900 units, what would be the net operating income? (Round Per Unit calculations to 2 decimal places.) 2. If the
1. If sales decline to 900 units, what would be the net operating income? (Round "Per Unit" calculations to 2 decimal places.) 2. If the variable cost per unit increases by $1, spending on advertising increases by $1,300, and unit sales increase by 160 units, what would be the net operating income? (Round "Per Unit" calculations to 2 decimal places.)
3. What is the break-even point in unit sales? (Round intermediate calculations to 2 decimal places.) 4. What is the break-even point in dollar sales?
5. How many units must be sold to achieve a target profit of $8,400? (Round intermediate calculations to 2 decimal places.)
6. Using the degree of operating leverage, what is the estimated percent increase in net operating income that would result from a 5% increase in unit sales? (Round your intermediate calculations and final answer to 2 decimal places.)
7. Assume that the amounts of the companys total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $8,680 and the total fixed expenses are $26,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.)
8. Assume that the amounts of the companys total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $8,680 and the total fixed expenses are $26,000. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales? (Round your intermediate calculations and final answer to 2 decimal places.)
Required information [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units)Step by Step Solution
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