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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

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

$ 40,000

Variable expenses

26,000

Contribution margin

14,000

Fixed expenses

8,680

Net operating income

$ 5,320

  1. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? (Round "Per Unit" calculations to 2 decimal places.)
  2. If the variable cost per unit increases by $1, spending on advertising increases by $1,300, and unit sales increase by 160 units, what would be the net operating income? (Round "Per Unit" calculations to 2 decimal places.)
  3. What is the break-even point in unit sales? (Round intermediate calculations to 2 decimal places.)
  4. What is the break-even point in dollar sales?
  5. How many units must be sold to achieve a target profit of $8,400?

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