Question
Hi I need help with this question set 1-5 thank you!! Oslo Company prepared the following contribution format income statement based on a sales volume
Hi I need help with this question set 1-5 thank you!!
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 $ 100,000
Variable expenses 65,000
Contribution margin 35,000
Fixed expenses 30,100
Net operating income $ 4,900
1. What is the contribution margin per unit?
2. What is the contribution margin ratio?
3. What is the variable expense ratio?
4. If sales increase to 1,001 units, what would be the increase in net operating income?
5. If sales decline to 900 units, what would be the net operating income?
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