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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

1. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? (Round "Per Unit" calculations to 2 decimal places.)

2. If the variable cost per unit increases by $1, spending on advertising increases by $1,750, and unit sales increase by 250 units, what would be the net operating income? (Round "Per Unit" calculations to 2 decimal places.)

3. What is the break-even point in unit sales? (Round intermediate calculations to 2 decimal places.)

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

5. How many units must be sold to achieve a target profit of $15,300? (Round intermediate calculations to 2 decimal places.)

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

7. What is the degree of operating leverage? (Round your answer to 2 decimal places.)

8. Using the degree of operating leverage, what is the estimated percent increase in net operating income that would result from a 5% increase in unit sales? (Round your intermediate calculations and final answer to 2 decimal places.)

9. Assume that the amounts of the companys total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $20,400 and the total fixed expenses are $59,500. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.)

10. Assume that the amounts of the companys total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $20,400 and the total fixed expenses are $59,500. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales? (Round your intermediate calculations and final answer to 2 decimal places.)

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