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Oslo company prepared the following contribution format income statement base on sales volume of 1,000 units (the relevant range of production is 500 to 1500
Oslo company prepared the following contribution format income statement base on sales volume of 1,000 units (the relevant range of production is 500 to 1500 units:) Sales $30,000 Variable expenses 18.000 Contribution margin 12,000 Fixed expenses 5.9.000 Net operating income 3.000 Note: to submit your response use excel or word and show your work to support your answer. Question 14 should read: assume that the company's variable expenses and total fixed expenses were reversed. In other words, assume that that the total variable expenses are $9,000 and the total fixed expenses are $18,000. Under this scenario and assuming that total sales remain at $30,000 what is the degree of operating leverage? 8. What is the break-even point in unit sales? 9. What is the break-even point in dollar sales? 10. How many units must be sold to achieve a target profit of $5,000? 11. What is the margin of safety in dollars? What is the margin of safety percentage? 12. What is the degree of operating leverage? 13. Using the degree of operating leverage, what is the estimated percent increase in net operat- ing income that would result from a 5% increase in unit sales
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