Question
A. What is the contribution margin per unit? (Round to 2 decimal places.) B. What is the contribution margin ratio? C. If sales increase to
A. What is the contribution margin per unit? (Round to 2 decimal places.)
B. What is the contribution margin ratio?
C. If sales increase to 1,001 units, what would be the increase in net operating income? (Round to 2 decimal places.)
D. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?
E. If the variable cost per unit increases by $1, spending on advertising increases by $1,000, and unit sales increase by 100 units, what would be the net operating income?
F. What is the break-even point in unit sales?
G. What is the break-even point in dollar sales?
H. How many units must be sold to achieve a target profit of $2,700?
I. What is the margin of safety in dollars? What is the margin of safety percentage?
J. What is the degree of operating leverage?
H. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Round 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): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 10,000 5,500 4,500 2,250 $ 2,250Step by Step Solution
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