Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $ 21,200
Variable expenses 12,400
Contribution margin 8,800
Fixed expenses 6,952
Net operating income $ 1,848

1. What is the contribution margin per unit

2. What is the contribution margin ratio? Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).

3.

what is the variable expense ratio? Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).

4. If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.)

5.

If sales decline to 900 units, what would be the net operating income? (Do not round intermediate calculations.)

6. If the selling price increases by $2.40 per unit and the sales volume decreases by 100 units, what would be the net operating income (Do not round intermediate calculations.)

7.What is the break-even point in unit sales?

8.

What is the break-even point in dollar sales? (Round intermediate calculations to 4 decimal places. Round your answer to the nearest dollar

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

11th Edition

9780538480901, 9781111525774, 538480890, 538480904, 1111525773, 978-0538480895

More Books

Students also viewed these Accounting questions

Question

4. Make recommendations on steps to take to melt the glass ceiling.

Answered: 1 week ago

Question

Please provide a detailed overview of both AS 2401 and 2405.

Answered: 1 week ago