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 $ 100,000 Variable expenses 65,000 Contribution margin 35,000 Fixed expenses 30,100 Net operating income $ 4,900

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

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	$ 100,000
Variable expenses	65,000
Contribution margin	35,000
Fixed expenses	30,100
Net operating income	$ 4,900

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

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	$ 100,000
Variable expenses	65,000
Contribution margin	35,000
Fixed expenses	30,100
Net operating income	$ 4,900

10. How many units must be sold to achieve a target profit of $21,000? (Round intermediate calculations to 2 decimal places.)

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	$ 100,000
Variable expenses	65,000
Contribution margin	35,000
Fixed expenses	30,100
Net operating income	$ 4,900

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

Margin of safety in dollar ?

Margin of safety percentage ?

12. What is the degree of operating leverage?

13. Using the degree of operating leverage, what is the estimated percent increase in net operating income resulting from a 5% increase in unit sales?

Increase in net operating income

14. 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 $30,100 and the total fixed expenses are $65,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage?

Degre of operating leverage ?

15. 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 $30,100 and the total fixed expenses are $65,000. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales?

Increase in net operating income