Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please provide all 15 required answers for Oslo Company for a thumbs up. thanks! Oslo Company prepared the following contribution format income statement based on
Please provide all 15 required answers for "Oslo Company" for a thumbs up. thanks!
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 Variable expenses Contribution margin Fixed expenses Net operating income $ 70,000 38,500 31,500 23,310 $8,190 Required: 1. What is the contribution margin per unit? (Round your answer to 2 decimal places.) Contribution margin per unit 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 Variable expenses Contribution margin Pixed expenses Net operating income $ 70,000 38,500 31,500 23310 $ 8,190 2. What is the contribution margin ratio? Contribution margin rato 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 Variable expenses Contribution margin Fixed expenses Net operating income $ 70,000 38.500 31.500 23,310 $9,190 3. What is the variable expense ratio? Variable exponerato 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); Salon Variable expenses Contribution margin Yased expenses Net operating income $ 70.000 38,500 31.500 23,310 $ 0,190 4. If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.) Increase in not operating income 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 Variable expenses Contribution margin Fixed expenses Net operating Income $ 70,000 38,500 31,500 23310 $ 8,190 5. If sales decline to 900 units, what would be the net operating income? Not operating incomo Oslo Company prepared the following contribution format income statement based on a sales volume of 1000 units (the relevant range of production is 500 units to 1.500 units): sales Variable expenses Contribution margin Fixed expenses Net operating income $ 70,000 38,500 31,500 23, 310 S8,190 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? Not operating incomo 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 Variable expenses Contribution margin Fixed expenses Wet operating income $ 70,000 38,500 31,500 23, 310 $ 8,190 7. If the variable cost per unit increases by $1. spending on advertising increases by $1,600, and unit sales increase by 220 units, what would be the net operating income? Not operating incomo 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 Variable expenses Contribution margin Fixed expenses Not operating income $70,000 38,500 31,500 23/310 8. What is the break-even point in unit sales? Break-even point units Oslo Company prepared the following contribution format income statement based on a sales volume of 1000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 70,000 30.500 31,500 23,310 $ 3.190 9. What is the break-oven point in dollar sales? Break-even point 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 Variable expenses Contribution margin Taxed expenses Net operating income 370,000 30.500 31,500 23.310 $ 8,190 10. How many units must be sold to achieve a target profit of $18,900? Number of 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 Variable expenses Contribution margin Fixed expenses Net operating income $ 70,000 38.500 31,500 23,310 $ 8,190 11. What is the margin of safety in dollars? What is the margin of safety percentage? Margin of safety in dollars Margin of safety percentage % Oslo Company prepared the following contribution format income statement based on a sales volume of 1000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Coptribution margin Fixed expenses Net operating Income $ 70,000 38.500 31,500 23310 $8,190 12. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Dogruo of operating loverago 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 1500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 70,000 38,500 31,500 23,310 $ 8,190 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Round your intermediate calculations and final answer to 2 decimal places.) Increase in net operating income % 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 Variable expenses Contribution margin Fixed expenses Net operating income $ 70,000 38,500 31,500 21310 5,190 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 $23,310 and the total fixed expenses are $38,500. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage 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 Variable expenses Contribution margin Fixed expenses Net operating Incote $ 70,000 38.500 31.500 23,310 $ 8,190 15. 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 $23,310 and the total fixed expenses are $38,500. Given this scenario and assuming that total sales remain the same. Using the degree of calculated operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Round your intermediate calculations and final answer to 2 decimal places) Increase in net operating income Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started