Question 7:

[The following information applies to the questions displayed below.]

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	$ 100,000
Variable expenses	65,000
Contribution margin	35,000
Fixed expenses	30,100
Net operating income	$ 4,900

7. If the variable cost per unit increases by $1, spending on advertising increases by $1,900, and unit sales increase by 280 units, what would be the net operating income? (Round "Per Unit" calculations to 2 decimal places.)

Question 8:

[The following information applies to the questions displayed below.]

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	$ 100,000
Variable expenses	65,000
Contribution margin	35,000
Fixed expenses	30,100
Net operating income	$ 4,900

8. What is the break-even point in unit sales? (Round intermediate calculations to 2 decimal places.)