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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 | $ 85,000 |
---|---|
Variable expenses | 59,500 |
Contribution margin | 25,500 |
Fixed expenses | 20,400 |
Net operating income | $ 5,100 |
Foundational 2-6 (Algo)
Required:
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?
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