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Ch. 2 - These are all part of the same problem. Required information [The following information applies to the questions displayed below.] Oslo Company prepared
Ch. 2 - These are all part of the same problem.
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): ?equired: . If sales increase to 1,001 units, what would be the increase in net operating income? Jote: Round your answer to 2 decimal places. x Answer is complete but not entirely correct. 14. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $30,100 and the total fixed expenses are $65,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? Note: Round your answer to 2 decimal places. Required: 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,900, and unit sales increase by 280 units, what would be the net operating income? Note: Round "Per Unit" calculations to 2 decimal places. Answer is complete but not entirely correct. 15. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $30,100 and the total fixed expenses are $65,000. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales? Note: Round your intermediate calculations and final answer to 2 decimal placesStep by Step Solution
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