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 1500 units.
I understand sales of 23,900 - variable expenses 13,300 and the contribution margin of 10,600 - fixed expenses of 7,632 = the net operating income of 2,968 my problem is the other part of the question.
1. What is the contribution margin per unit? I have 10.60 is that correct?
2. What is the contribution margin ratio?
3. what is the variable expense ratio?
4.If sales increase to 1001 units what would be in increase in net operation income?
5. If sales decline to 900 units, what would be the net operating income?
6. If the selling price increase by $2.30 per unit and the sales volume decreased by 100 units, what would be the net operating income?
7. If the variable cost per unit increase by $1.30 spending on advertising increases by $1,800 and unit sales increase by 250 units what would be the net opening income?
8. What is the break-even point in unit sales?
9. What is the break-even point in dollar sales?
10. How many units must be sold?
11. a What is the margin of safety in dollars? 11 what is the margin of safety percentage? 12. What is the degree of operating leverage?
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