Question
8. What is the break-even point in unit sales? 9. What is the break-even point in dollar sales? 10. How many units must be sold
8. What is the 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 $22,800?
11. What is the margin of safety in dollars? What is the margin of safety percentage?
Margin of safety in dollar:
Margin of safety percentage:
12. What is the degree of operating leverage?
13. 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?
14. 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 $31,920 and the total fixed expenses are $57,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage?
15. 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 $31,920 and the total fixed expenses are $57,000. Using the degree of operating leverage, what is the estimated percent increase 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): Required: 1. What is the contribution margin per unit? (Round your answer to 2 decimal places.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started