Question
A. 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
A. 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$23,900Variable expenses13,300Contribution margin10,600Fixed expenses7,632Net operating income$2,968
Required:Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 4% increase in sales?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
B. 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$21,800Variable expenses12,600Contribution margin9,200Fixed expenses7,452Net operating income$1,748
Required:What is the degree of operating leverage?(Round your answer to 2 decimal places.)
C. 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$24,500Variable expenses13,500Contribution margin11,000Fixed expenses7,700Net operating income$3,300
Required:
a.What is the margin of safety in dollars?(Do not round intermediate calculations.)
b.What is the margin of safety percentage?
D. 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$22,100Variable expenses12,700Contribution margin9,400Fixed expenses7,708Net operating income$1,692
Required:What is the break-even point in sales dollars?(Do not round intermediate calculations. Round your answer to the nearest dollar amount.)
E. 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$23,300Variable expenses13,100Contribution margin10,200Fixed expenses7,548Net operating income$2,652
Required:If the selling price increases by $2.10 per unit and the sales volume decreases by 100 units, what would be the net operating income?(Do not round intermediate calculations.)
PLEASE CLEARLY STATE THE FINAL ANSWER
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