Question
1. What is contribution margin per unit ? 2. What is contribution margin ratio ? 3. What is variable expense ratio ? 4. If sales
1. What is contribution margin per unit ?
2. What is contribution margin ratio ?
3. What is variable expense ratio ?
4. If sales increase to 1,001 units, what would be the increase in net operate income ?
5. If sales decline to 900 units, what would be the net operate income ?
6. If the selling price increase by $2 per unit and sales volume decreases by 100 units, what would be the net operating income ?
7. If the variable cost per unit increase by $1, spend on advertising increases by $1500, and unit sales increase by $250 units, what would be the net operating income ?
8. What is break-even point in unit sales ?
9. What is the break-even point in dollar sales ?
10. how many units must be sold to achieve a target profit of $5000 ?
Required information The Foundational 15 (LO5-1, LO5-3, LO5-4, LO5-5, LO5-6, LO5-7, L05-8) [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 $ 20,000 12,000 8,000 6,000 2,000 Foundational 5-1 . Required: 1. What is the contribution margin per unit? Contribution margin per unitStep by Step Solution
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