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 $ 23,0000
Variable Expenses 13,000
Contribution Margin 10,000
Fixed Expenses 8,500
Net Operating Income 1,500
A.) What is the contribution margin per unit? (Round your answer to 2 decimal places.)
B.) What is the contribution margin ratio? Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).
C.) What is the variable expense ratio? Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).
D.) If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.)
E.) If sales decline to 900 units, what would be the net operating income? (Do not round intermediate calculations.)
F.) If the selling price increases by $1.50 per unit and the sales volume decreases by 100 units, what would be the net operating income? (Do not round intermediate calculations.)
G.) If the variable cost per unit increases by $.50, spending on advertising increases by $1,000, and unit sales increase by 250 units, what would be the net operating income? (Do not round intermediate calculations.
H.) How many units must be sold to achieve a target profit of $5,750? (Do not round intermediate calculations.) |
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