PLEASE if u could help me with this asap!! I'd really appreciate it

1 Chap 5 Assignment 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): 5 6 7 9 Salos Variable expenses Contribution margin Fixed expenses Net operating income $20,000 12,000 8,000 6,000 $ 2.000 10 11 12 Required: (Answer cach question independently and always refer to the original data unless instructed otherwise.) 14 15 Requirement 1: Contribution Margin per Unit Total Contribution Margin (A) Total Units Sold/B) Contribution Margin per Unit (A/B) 8000 1000 Requirement 2: CM Ratio Total Contribution Margin (A) Total Sales (B) CM Ratio (A/B) 8000 20000 40.00% Requirement 3: Variable Expense Ratio Total Variable Expenses (A) Total Sales (B) Variable Expense Ratio (A/B) 12000 20000 60.00% 8 1 Requirement 4: If Sales Increases to 1001, Increase in Net Operating Income Contribution Margin per Unit (A) Increase in Unit Sales (B) Increase in Net Operating Income (AXB) Requirements: If Sales Decline to 900 units Total (900 units) 900 Per Unit TO 30800 7200 5000 1200 Sales Less: Variable Expenses Contribution Less: Fixed Cost Net Operating Income 12 Requirement: If Selling Price decreases by $2 unit and Sales volume decreases by 100 units 900 Total 900 units Per Unit Sales 16200 Less: Variable Expenses 1000 Contribution SADO Less Fixed Cost 5000 Net Operating Income -600 10 12 Requirement 7 Total 300 units 2250 Per Unit 25000 16250 370 7500 1250 Sales Less: Variable Expenses Contribution Less: Fured Cost Net Operating Income 20 13 Workings: Per Unit (Total / 1000 units Total 20 20000 1.2000 Sales Les Variable Expenses Contribution Less: Foxed Cost Net Income 5000 2000 1 8. What is the break-even point in unit sales? 2. 3 4 Fixed cost - (a) Unit contribution margin-see Q1 (b) Breakeven quantity (a) = (b) 5 7 7 8 9 8 9. What is the break-even point in dollar sales? 10 11 Fixed cost (a) Contribution margin ratio- see Q2 (b) Dollar sales to breakeven (a) + (b) 12 13 14 OR 15 16 17 Unit selling price (a) Unit sales to breakeven (b) Dollar sales to breakeven (a) (b) 18 19 20 G D 1 10. How many units must be sold to achieve a target profit of $5,000? 2 3 4 6 Fixed costs Target profit Total fixed costs & target profit (a) Unit contribution margin (b) Units to attain target profit (a) + (b) 7 8 8 9 10 11 12 B E F K 11. What is the margin of safety in dollars? What is the margin of safety percentage? 2 3 4 Margin of safety (in dollars) Sales (a) Break-even sales -see 09 (b) Margin of safety (in dollars) (a) - (b) 5 6 7 8 9 Margin of safety as a percentage of sales Margin of safety (in dollars) (a) Sales (b) Margin of safety percentage (a) + (b) 10 11 12 13 14 15 B D E F G H 1 12. What is the degree of operating leverage? 2 2 3 3 4 Contribution margin (a) Net operating income (b) Degree of operating leverage (a) (b) 5 6 7 8 8 . 9 10 H7 -X fx B D E F G 1 K M N 1. 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? 2 3 4 Degree of operating leverage (a) Percent increase in sales (6) Percent increase in net operating income (a) x (b) 2 5 9 10 11 12 13 14 10 C D E F G M N 0 14. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $6,000 and the total fixed expenses are $12,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? Contribution margin (a) Net operating income (b) Degree of operating leverage (a)+ (b) H7 xfx C D E G K M N 0 P 15. Using the degree of operating leverage that you computed in the previous question, what is the estimated percent increase in net operating income of a 5% increase in sales? Degree of operating leverage (a) Percent increase in sales (b) Percent increase in net operating Income (a)x(b) 10 11 12 113 1 15