Question
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
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 | $ | 23,300 |
Variable expenses | 13,100 | |
Contribution margin | 10,200 | |
Fixed expenses | 7,548 | |
Net operating income | $ | 2,652 |
5. | If sales decline to 900 units, what would be the net operating income? (Do not round intermediate calculations.) Net operating income? |
6. | If the selling price increases by $2.10 per unit and the sales volume decreases by 100 units, what would be the net operating income? (Do not round intermediate calculations.) Net operating income? |
7. | 7. If the variable cost per unit increases by $1.10, spending on advertising increases by $1,600, and unit sales increase by 250 units, what would be the net operating income? (Do not round intermediate calculations.) Net operating income?
Margin of safety?
Degree of operating leverage?
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