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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 | $ | 25,000 |
Variable expenses | 17,500 | |
Contribution margin | 7,500 | |
Fixed expenses | 4,200 | |
Net operating income | $ | 3,300 |
1. What is the contribution margin per unit? 2. What is the contribution margin ratio? 3. What is the variable expense ratio? 4. Break-even point in unit sales? 5. Break-even point in dollar sales? 6. How many units must be sold to achieve a target profit of $4,500? 7. What is the margin of safety in dollars? What is the margin of safety percentage?
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