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 | $ | 24,200 |
Variable expenses | 13,400 | |
Contribution margin | 10,800 | |
Fixed expenses | 7,668 | |
Net operating income | $ | 3,132 |
1. | What is the contribution margin per unit? (Round your answer to 2 decimal places.) |
2. | What is the contribution margin ratio? Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34)
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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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5. | If sales decline to 900 units, what would be the net operating income? (Do not round intermediate calculations.)
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