Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE, if you could help me with this asap!!! I'd really appreciate it 1 Chap 5 Assignment Oslo Company prepared the following contribution format income

PLEASE, if you could help me with this asap!!! I'd really appreciate it image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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): 4 5 7 9 10 Salos $20,000 Variable expenses 12,000 Contribution margin 8,000 Fixed expenses 6.000 Net operating income $ 2,000 Required: (Answer cach question independently and always refer to the original data unless instructed otherwise) 11 12 13 14 15 1. What is the contribution margin per unit? Total contribution margin (a) Total units sold (b) Contribution margin per unit (a) = (b) 5 8 9 110 B D E F G 1 2. What is the contribution margin ratio? N 2 3 4 Total contribution margin (a) Total sales (b) Contribution margin ratio (a) = (b) 5 6 7 8 00 9 10 11 12 13 A B D E F G 3. What is the variable expense ratio? Total variable expenses (a) Total sales (b) Variable expense ratio (a) = (b) 5 3 9 10 D F G K B H 4. If sales increase to 1,001 units, what would be the increase in net operating income? Contribution margin per unit (a) Increase in unit sales (b) Increase in net operating income (a) (b) 1 2 B D F G E H 5. If sales decline to 900 units, what would be the net operating income? 2 Total Per Unit 4 $ 6 Sales Variable expenses Contribution argin Fixed expenses Net operating income 8 9 110 111 12 13 14 N K M H G F D B A 510 x fx C 6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? 4 5 Total Per Unit 6 7 8 Sales Variable expenses Contribution margin Fixed expenses Net operating income 9 10 11 12 13 14 15 16 10 fx A B D E G N M H 17. If the variable cost per unit increases by S1, spending on advertising increases by $1,500, and unit sales increase by 250 units, what would be the net operating income? Total Per Unit Sales Variable expenses Contribution margin Fixed expenses Net operating income 9 10 12 12 13 14 15

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

Students also viewed these Accounting questions