Question
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?
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Introduction to Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
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