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	$	65,000
Variable expenses		45,500
Contribution margin		19,500
Fixed expenses		14,040
Net operating income	$	5,460

1. If sales decline to 900 units, what would be the net operating income?

2. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?

3. If the variable cost per unit increases by $1, spending on advertising increases by $1,550, and unit sales increase by 210 units, what would be the net operating income?

4. What is the break-even point in unit sales?

5. What is the break-even point in dollar sales?

6. How many units must be sold to achieve a target profit of $11,700?