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 $ 22,100
Variable expenses 12,700
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Contribution margin 9,400
Fixed expenses 7,708
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Net operating income $ 1,692
1) If the selling price increases by $1.80 per unit and the sales volume decreases by 100 units, what would be the net operating income? (Do not round intermediate calculations.)
2) If the variable cost per unit increases by $.80, spending on advertising increases by $1,300, and unit sales increase by 250 units, what would be the net operating income? (Do not round intermediate calculations.)
3) What is the break-even point in dollar sales? (Round intermediate calculations to 4 decimal places. Round your final answer to the nearest dollar amount.)
4) How many units must be sold to achieve a target profit of $5,546? (Do not round intermediate calculations.)
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