Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Oslo Company prepared the following contribution income statement based on sales volume of 1000 units the relevant range of production is 500 units to 1500

Oslo Company prepared the following contribution income statement based on sales volume of 1000 units the relevant range of production is 500 units to 1500 units):

Sales $95,000

Variable expenses 5700

contribution margin 38000

fixed expenses 31,920

Net operating income $6080

1. WHAT is the contribution margin per unit ?

2.What is the contribution margin per ration?

3.If sales increase to 1001,units what would be the increase in net operating income?

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

5.What is the break even point in unit sales?

6. What is the break even in dollar sales?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: John Hoggett, Lew Edwards, John Medlin, Keryn Chalmers, Jodie Maxfield, Andreas Hellmann, Claire Beattie

9th Edition

1118608208, 978-1118608203

More Books

Students also viewed these Accounting questions

Question

Which of the following is an example of acting as a human firewall?

Answered: 1 week ago