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1. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?

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1. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?
2. If the variable cost per unit increases by $1, spending on advertising increases by $1,850, and unit sales increases by 270 units; what would be the net operating income?
3. What is the break-even point in unit sales?
4. How many units must be sold to achieve a target profit of $22,800?
5. What is the margin of safety in dollars? What is the margin of safety percentage?
6. Using the degree of operating leverage, what is the estimated percent increases in net operating income of a 5% increase in unit sales?
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): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 95,000 57.000 38,000 31,920 $ 6,080

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