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If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? If

  1. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?
  2. If the variable cost per unit increases by $1, spending on advertising increases by $1,150, and unit sales increase by 130 units, what would be the net operating income?
  3. What is the break-even point in unit sales?
  4. What is the break-even point in dollar sales?
  5. How many units must be sold to achieve a target profit of $4,500?
  6. What is the margin of safety in dollars? What is the margin of safety percentage?
  7. What is the degree of operating leverage? (Round your answer to 2 decimal places.)
  8. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Round your intermediate calculations and final answer to 2 decimal places.)
  9. 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 $4,200 and the total fixed expenses are $17,500. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.)
  10. 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 $4,200 and the total fixed expenses are $17,500. Given this scenario and assuming that total sales remain the same. Using the degree of calculated operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Round your intermediate calculations and final answer to 2 decimal places.)
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[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)

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