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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 $ 105,000
Variable expenses 73,500
Contribution margin 31,500
Fixed expenses 27,720
Net operating income $ 3,780

a.) If sales decline to 900 units, what would be the net operating income?

b.) If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?

c.) If the variable cost per unit increases by $1, spending on advertising increases by $1,950, and unit sales increase by 290 units, what would be the net operating income?

d.) What is the break-even point in unit sales?

e.) What is the break-even point in dollar sales?

f.) How many units must be sold to achieve a target profit of $18,900?

g.) What is the margin of safety in dollars? What is the margin of safety percentage?

h.) What is the degree of operating leverage?

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