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 $ 70,000 Variable expenses 38,500 Contribution margin 31,500 Fixed expenses 23,310 Net operating income $ 8,190 Required:
1. What is the contribution margin per unit? (Round your answer to 2 decimal places.)
2. What is the contribution margin ratio?
3. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? (Round "Per Unit" calculations to 2 decimal places.)
4.If the variable cost per unit increases by $1, spending on advertising increases by $1,600, and unit sales increase by 220 units, what would be the net operating income? (Round "Per Unit" calculations to 2 decimal places.)
5.What is the break-even point in unit sales? (Round intermediate calculations to 2 decimal places.)
6.What is the break-even point in dollar sales?
7.How many units must be sold to achieve a target profit of $18,900? (Round intermediate calculations to 2 decimal places.)
8.What is the margin of safety in dollars? What is the margin of safety percentage?
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