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Oslo Company prepared the following contribution format income statement based on a sales volume of 1 , 0 0 0 units ( the relevant range

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):
2. What is the contribution margin ratio?
3. What is the variable expense ratio?
4. If sales increase to 1,001 units, what would be the increase in net operating income?
5. If sales decline to 900 units, what would be the net operating income?
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 \(\$ 1,250\), and unit sales increase by 150 units, what would be the net operating income?
8. What is the break-even poiht 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 \(\$ 8,400\)?
11. What is the margin of safety in dollars? What is the margin of safety percentage?
12. What is the degree of operating leverage?
13. Using the degree of operating leverage, what is the estimated percent increase in net operating income that would result from a \(5\%\) increase in unit sales?
14. Assume the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume the total variable expenses are \(\$ 8,400\) and the total fixed expenses are \(\$ 21,000\). Under this scenario and assuming total sales remain the same, what is the degree of operating leverage?
15. Assume the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume the total variable expenses are \(\$ 8,400\) and the total fixed expenses are \(\$ 21,000\). Using the degree of operating leverage, what is the estimated percent increase in net operating income that would result from a \(5\%\) increase in unit sales?
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