Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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.

If the selling price increases by $2.30 per unit and the sales volume decreases by 100 units, what would be the net operating income (Do not round intermediate calculations.)

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.

What is the margin of safety percentage? (Round your final answers to the nearest whole percentage (i.e, .12 should be entered as 12).)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Complete Guide

Authors: Gerardus Blokdyk

2023rd Edition

1038805538, 978-1038805539

More Books

Students also viewed these Accounting questions

Question

How would we like to see ourselves?

Answered: 1 week ago