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 $ 21,800 Variable expenses 12,600 Contribution margin 9,200 Fixed expenses 7,452 Net operating income $ 1,748 1 value 10 00 points Required information Required 1 What is the contribution margin per unit (Round your answer to 2 decimal places ) References eBook Resources Worksheet Learning Objective 05 03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume Learning Objective 05 06 Determine the level of sales needed to achieve a desired target profit Difficulty 2 Medium Learning Objective 05 04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume Learning Objective 05 07 Compute the margin of safety and explain its significance Learning Objective 05 01 Explain how changes in activity affect contribution margin and net operating income Learning Objective 05 05 Determine the break even point Learning Objective 05 08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income Check my work 2 value 10 00 points Required information 2 What is the contribution margin ratio Round your percentage answer to 2 decimal places (i e 1234 should be entered as 12 34) References eBook Resources Worksheet Learning Objective 05 03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume Learning Objective 05 06 Determine the level of sales needed to achieve a desired target profit Difficulty 2 Medium Learning Objective 05 04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume Learning Objective 05 07 Compute the margin of safety and explain its significance Learning Objective 05 01 Explain how changes in activity affect contribution margin and net operating income Learning Objective 05 05 Determine the break even point Learning Objective 05 08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income Check my work 3 value 10 00 points Required information 3 What is the variable expense ratio Round your percentage answer to 2 decimal places (i e 1234 should be entered as 12 34) References eBook Resources Worksheet Learning Objective 05 03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume Learning Objective 05 06 Determine the level of sales needed to achieve a desired target profit Difficulty 2 Medium Learning Objective 05 04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume Learning Objective 05 07 Compute the margin of safety and explain its significance Learning Objective 05 01 Explain how changes in activity affect contribution margin and net operating income Learning Objective 05 05 Determine the break even point Learning Objective 05 08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income Check my work 4 value 10 00 points Required information 4 If sales increase to 1,001 units, what would be the increase in net operating income (Round your answer to 2 decimal places ) References eBook Resources Worksheet Learning Objective 05 03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume Learning Objective 05 06 Determine the level of sales needed to achieve a desired target profit Difficulty 2 Medium Learning Objective 05 04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume Learning Objective 05 07 Compute the margin of safety and explain its significance Learning Objective 05 01 Explain how changes in activity affect contribution margin and net operating income Learning Objective 05 05 Determine the break even point Learning Objective 05 08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income Check my work 5 value 10 00 points Required information 5 If sales decline to 900 units, what would be the net operating income (Do not round intermediate calculations ) References eBook Resources Worksheet Learning Objective 05 03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume Learning Objective 05 06 Determine the level of sales needed to achieve a desired target profit Difficulty 2 Medium Learning Objective 05 04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume Learning Objective 05 07 Compute the margin of safety and explain its significance Learning Objective 05 01 Explain how changes in activity affect contribution margin and net operating income Learning Objective 05 05 Determine the break even point Learning Objective 05 08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income Check my work 6 value 10 00 points Required information 6 If the selling price increases by $1 90 per unit and the sales volume decreases by 100 units, what would be the net operating income (Do not round intermediate calculations ) References eBook Resources Worksheet Learning Objective 05 03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume Learning Objective 05 06 Determine the level of sales needed to achieve a desired target profit Difficulty 2 Medium Learning Objective 05 04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume Learning Objective 05 07 Compute the margin of safety and explain its significance Learning Objective 05 01 Explain how changes in activity affect contribution margin and net operating income Learning Objective 05 05 Determine the break even point Learning Objective 05 08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income Check my work 7 value 10 00 points Required information 7 If the variable cost per unit increases by $ 90, spending on advertising increases by $1,400, and unit sales increase by 250 units, what would be the net operating income (Do not round intermediate calculations ) References eBook Resources Worksheet Learning Objective 05 03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume Learning Objective 05 06 Determine the level of sales needed to achieve a desired target profit Difficulty 2 Medium Learning Objective 05 04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume Learning Objective 05 07 Compute the margin of safety and explain its significance Learning Objective 05 01 Explain how changes in activity affect contribution margin and net operating income Learning Objective 05 05 Determine the break even point Learning Objective 05 08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income Check my work 8 value 10 00 points Required information 8 What is the break even point in unit sales (Do not round intermediate calculations ) References eBook Resources Worksheet Learning Objective 05 03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume Learning Objective 05 06 Determine the level of sales needed to achieve a desired target profit Difficulty 2 Medium Learning Objective 05 04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume Learning Objective 05 07 Compute the margin of safety and explain its significance Learning Objective 05 01 Explain how changes in activity affect contribution margin and net operating income Learning Objective 05 05 Determine the break even point Learning Objective 05 08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income Check my work 9 value 10 00 points Required information 9 What is the break even point in dollar sales (Round intermediate calculations to 4 decimal places Round your final answer to the nearest dollar amount ) rev 03 10 2015 QC CS 10418 References eBook Resources Worksheet Learning Objective 05 03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume Learning Objective 05 06 Determine the level of sales needed to achieve a desired target profit Difficulty 2 Medium Learning Objective 05 04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume Learning Objective 05 07 Compute the margin of safety and explain its significance Learning Objective 05 01 Explain how changes in activity affect contribution margin and net operating income Learning Objective 05 05 Determine the break even point Learning Objective 05 08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income Check my work 10 value 10 00 points Required information 10 How many units must be sold to achieve a target profit of $5,474 (Do not round intermediate calculations ) References eBook Resources Worksheet Learning Objective 05 03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume Learning Objective 05 06 Determine the level of sales needed to achieve a desired target profit Difficulty 2 Medium Learning Objective 05 04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume Learning Objective 05 07 Compute the margin of safety and explain its significance Learning Objective 05 01 Explain how changes in activity affect contribution margin and net operating income Learning Objective 05 05 Determine the break even point Learning Objective 05 08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income Check my work 11 value 10 00 points Required information 11 a What is the margin of safety in dollars (Do not round intermediate calculations ) 11 b What is the margin of safety percentage (Round your final answers to the nearest whole percentage (i e, 12 should be entered as 12) ) References eBook Resources Worksheet Learning Objective 05 03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume Learning Objective 05 06 Determine the level of sales needed to achieve a desired target profit Difficulty 2 Medium Learning Objective 05 04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume Learning Objective 05 07 Compute the margin of safety and explain its significance Learning Objective 05 01 Explain how changes in activity affect contribution margin and net operating income Learning Objective 05 05 Determine the break even point Learning Objective 05 08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income Check my work 12 value 10 00 points Required information 12 What is the degree of operating leverage (Round your answer to 2 decimal places ) References eBook Resources Worksheet Learning Objective 05 03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume Learning Objective 05 06 Determine the level of sales needed to achieve a desired target profit Difficulty 2 Medium Learning Objective 05 04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume Learning Objective 05 07 Compute the margin of safety and explain its significance Learning Objective 05 01 Explain how changes in activity affect contribution margin and net operating income Learning Objective 05 05 Determine the break even point Learning Objective 05 08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income Check my work 13 value 10 00 points Required information 13 Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5 increase in sales Do not round intermediate calculations Round your percentage answer to 2 decimal places (i e 1234 should be entered as 12 34) rev 03 10 2015 QC CS 10418

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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	$	21,800
Variable expenses		12,600

Contribution margin		9,200
Fixed expenses		7,452

Net operating income	$	1,748

value: 10.00 points

Required information

Required:

1.	What is the contribution margin per unit? (Round your answer to 2 decimal places.)

References

eBook & Resources

WorksheetLearning Objective: 05-03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume.Learning Objective: 05-06 Determine the level of sales needed to achieve a desired target profit.

Difficulty: 2 MediumLearning Objective: 05-04 Show the effects on net operating income of changes in variable costs, fixed costs, selling price, and volume.Learning Objective: 05-07 Compute the margin of safety and explain its significance.

Learning Objective: 05-01 Explain how changes in activity affect contribution margin and net operating income.Learning Objective: 05-05 Determine the break-even point.Learning Objective: 05-08 Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income.

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value: 10.00 points

Required information

2.	What is the contribution margin ratio? Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).

References

eBook & Resources

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value: 10.00 points

Required information

3.	What is the variable expense ratio? Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).

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value: 10.00 points

Required information

4.	If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.)

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value: 10.00 points

Required information

5.	If sales decline to 900 units, what would be the net operating income? (Do not round intermediate calculations.)

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value: 10.00 points

Required information

6.	If the selling price increases by $1.90 per unit and the sales volume decreases by 100 units, what would be the net operating income? (Do not round intermediate calculations.)

References

eBook & Resources

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value: 10.00 points

Required information

7.	If the variable cost per unit increases by $.90, spending on advertising increases by $1,400, and unit sales increase by 250 units, what would be the net operating income? (Do not round intermediate calculations.)

References

eBook & Resources

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value: 10.00 points

Required information

8.	What is the break-even point in unit sales? (Do not round intermediate calculations.)

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value: 10.00 points

Required information

9.	What is the break-even point in dollar sales? (Round intermediate calculations to 4 decimal places. Round your final answer to the nearest dollar amount.)

rev: 03_10_2015_QC_CS-10418

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10.

value: 10.00 points

Required information

10.	How many units must be sold to achieve a target profit of $5,474? (Do not round intermediate calculations.)

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11.

value: 10.00 points

Required information

11-a.

What is the margin of safety in dollars? (Do not round intermediate calculations.)

11-b.

What is the margin of safety percentage? (Round your final answers to the nearest whole percentage (i.e, .12 should be entered as 12).)

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12.

value: 10.00 points

Required information

12.	What is the degree of operating leverage? (Round your answer to 2 decimal places.)

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13.

value: 10.00 points

Required information

13.	Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).

rev: 03_10_2015_QC_CS-10418