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): |
Sales | $ | 26,000 |
Variable expenses | 14,000 | |
Contribution margin | 12,000 | |
Fixed expenses | 7,800 | |
Net operating income | $ | 4,200 |
6. If the selling price increases by $1.50 per unit and the sales volume decreases by 100 units, what would be the net operating income(Do not round intermediate calculations.) 7. If the variable cost per unit increases by $.50, spending on advertising increases by $1,000, and unit sales increase by 250 units, what would be the net operating income? (Do not round intermediate calculations.) 8.What is the break-even point in unit sales? (Do not round intermediate calculations.) 9. What is the break-even point in dollar sales? (Round intermediate calculations to 4 decimal places. Round your answer to the nearest dollar amount.) |
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