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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

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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): $21,800 12,600 Sales Variable expenses Contribution margin Fixed expenses 9,200 7,452 Net operating income $ 1.748 Required: If the variable cost per unit increases by $0.90, spending on advertising increases by $1,400, and unit sales increase by 250 units, what would be the net operating income? (Do not round intermediate calculations.) Net operating income Your Retail Store's accountant prepared the following income statement for the ladies' accessories product line: Sales Less: Variable expenses $3,100,000 1.457.000 1,843,000 Contribution margin Less Fixed expenses: Wages Insurance on inventory Advertising Net operating income (loss) $1,116,000 62,000 682,000 1,860,000 $ (217,000) Management is concerned about the loss and is considering dropping the product line. If the product line is dropped, a job has to be created elsewhere for a long-term employee currently earning an annual salary of $93,000 Required: Calculate the increase or decrease in the operating income in both alternatives. Keep Accesories Product Line Drop Accesories Product Line Sales Fixed expenses Net operating income (loss)

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