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 | $ | 20,000 |
Variable expenses | 12,000 | |
Contribution margin | 8,000 | |
Fixed expenses | 6,000 | |
Net operating income | $ | 2,000 |
Part 1: If sales increase to 1,001 units, what would be the increase in net operating income?
A. $10
B.$8
C. $12
D. Not enough information is given
Part2:If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?
Group of answer choices
A. $3,000
B. $1,800
C. Not enough information is given
D. $2,000
Part3: What is the break-even point in unit sales?
Group of answer choices
A. 738
B. 545
C. 500
D. 750
part4: What is the margin of safety in dollars?
Group of answer choices
A. $10,000
B. $5,000
C. $8,000
D. $2,000
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