Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Oslo Company prepared the following contribution format income statement based on a sales volume of 1.000 units (the relevant range of product on is 500
Oslo Company prepared the following contribution format income statement based on a sales volume of 1.000 units (the relevant range of product on is 500 units to 1.500 units) How many units must be sold to achieve a target profit of $5.474? (Do not round intermediate calculations.) What is the margin of safety in dollars? (Do not round intermediate calculations.) What is the margin of safety percentage? (Round your final answers to the nearest whole percentage (i.e., 12 should be entered as 12).) What is the degree of operating leverage? (Round your answer to 2 decimal places.) Using the degree of operating leverage what is the estimated percent increase in net operating income of a 5% increase in sales? Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e., 1234 should be entered as 12.34}. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $7, 452 and the total fixed expenses are $12, 600. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.) Assume that the amounts of the company's total variable expenses and total toed expenses were reversed. In other words, assume that the total variable expenses are $7, 452 and the total fixed expenses are $12, 600. Given the scenario and assuming that total sales remain the same, calculate the degree of operating leverage. Using the calculated degree of operating leverage, what is the estimated percent increase r net operating income of a 5% increase in sales? Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e., 1234 should be entered as 12.34)
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