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 | $85,000 |
Variable expenses | 59,500 |
Contribution margin | 25,500 |
fixed expenses | 20,400 |
net operating income | 5,100 |
6) If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?
7) If the variable cost per unit increases by $1, spending on advertising increases by $1,750, and unit sales increase by 250 units, what would be the net operating income?
8) what is the break-even point in unit sales?
9) what is the break-even point in dollar sales?
10) How many units must be sold to achieve a target profit of $15,300?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started