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Foundational 5-7 Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is

Foundational 5-7

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 $ 23,000
Variable expenses 13,000


Contribution margin 10,000
Fixed expenses 8,500


Net operating income $ 1,500





Required:

If the variable cost per unit increases by $.50, spending on advertising increases by $1,000, and unit sales increase by 250 units, what would be the net operating income? (Do not round intermediate calculations.)

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