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 | $ | 20,900 | ||||
Variable expenses | 12,300 | |||||
Contribution margin | 8,600 | |||||
Fixed expenses | 6,708 | |||||
Net operating income | $ | 1,892 | ||||
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1.What is the contribution margin per unit? 2.If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.) 3.If sales decline to 900 units, what would be the net operating income? (Do not round intermediate calculations.) 4.
5.If the variable cost per unit increases by $1.30, spending on advertising increases by $1,800, and unit sales increase by 250 units, what would be the net operating income? (Do not round intermediate calculations.) 6. What is the break-even point in unit sales? 7.What is the break-even point in dollar sales? (Round intermediate calculations to 4 decimal places. Round your answer to the nearest dollar amount.) 8.How many units must be sold to achieve a target profit of $5,246? (Do not round intermediate calculations.) 9.What is the margin of safety in dollars? (Do not round intermediate calculations.) 10.
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