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 | $ | 55,000 |
| Variable expenses | 33,000 | |
| Contribution margin | 22,000 | |
| Fixed expenses | 14,960 | |
| Net operating income | $ | 7,040 |
5. If sales decline to 900 units, what would be the net operating income?
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International Financial Accounting And Reporting
Authors: Ciaran Connolly
2nd Edition
0903854724, 978-0903854726
