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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 | $ 20,000 |
---|---|
Variable expenses | 12,000 |
Contribution margin | 8,000 |
Fixed expenses | 6,000 |
Net operating income | $ 2,000 |
7. If the variable cost per unit increases by $1, spending on advertising increases by $1,500, and unit sales increase by 250 units, what would be the net operating income?
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