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	$	20,000
Variable expenses		13,000
Contribution margin		7,000
Fixed expenses		3,780
Net operating income	$	3,220

7. If the variable cost per unit increases by $1, spending on advertising increases by $1,100, and unit sales increase by 120 units, what would be the net operating income?

Net operating Income_______

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

Break-even point ______ units

9. What is the break-even point in dollar sales?

Break-even points ____

10. How many units must be sold to achieve a target profit of $4,200?

Number of units ______

11. What is the margin of safety in dollars? What is the margin of safety percentage?

Margin of safety in dollars ________

Margin of safety percentage ___________