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): Required (Answer each question independently and always refer to the original data unless instructed otherwise.)
Sales $ 22,100
Variable expenses 12,700
Contribution margin 9,400
Fixed expenses 7,708
Net operating income $ 1,692
7.If the variable cost per unit increases by $.80, spending on advertising increases by $1,300, and unit sales increase by 250 units, what would be the net operating income?
8.What is the break even point in unit sales?
10.How many units must be sold to achieve a target profit of $5,546?
11.What is the margin of safety in dollars? What is the margin of safety percentage?
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