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 | $ 70,000 |
---|---|
Variable expenses | 38,500 |
Contribution margin | 31,500 |
Fixed expenses | 23,310 |
Net operating income | $ 8,190 |
Foundational 5-6 (Algo)
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 $1,600, and unit sales increase by 220 units, what would be the net operating income?
8. What is the break-even point in unit sales?
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